texas highway cost allocation study - The University of Texas at Austin

166 Pages·2003·0.77 MB·English

by  David Luskin

Technical Report Documentation Page
1. Report No. 2. Government Accession 3. Recipient’s Catalog No.
FHWA/TX-02-1810-2 No.

4. Title and Subtitle 5. Report Date
October 2000
TEXAS HIGHWAY COST ALLOCATION STUDY Revised October 2002
6. Performing Organization Code
7. Author(s) 8. Performing Organization Report No.
David Luskin, Alberto Garcia-Diaz, C. Michael Walton, and Zhanmin 1810-2
Zhang
9. Performing Organization Name and Address 10. Work Unit No. (TRAIS)
Center for Transportation Research Texas Transportation Institute
The University of Texas at Austin Texas A&M University System 11. Contract or Grant No.
3208 Red River, Suite 200 College Station, TX 77843 0-1810
Austin, TX 78705-2650
12. Sponsoring Agency Name and Address 13. Type of Report and Period Covered
Texas Department of Transportation Research Report (9/99-9/00)
Research and Technology Implementation Office 14. Sponsoring Agency Code
P.O. Box 5080
Austin, TX 78763-5080
15. Supplementary Notes
Project conducted in cooperation with the U.S. Department of Transportation, Federal Highway Administration, and
the Texas Department of Transportation.
16. Abstract
The present research project will investigate the fairness of the structure of taxes and charges imposed on Texas
highway users. The focus will be on equity between vehicle classes. For each defined vehicle class, the project will
estimate the share of total revenues from highway user taxes and charges that the class contributes. For comparison, it
will also estimate the share of highway system costs that stem from each class. If the structure of taxes and charges is
fully equitable, each class’s revenue share will equal its cost share.
This report describes the first phase of our study, which entailed the development of models and databases. The
second phase will include scenario-testing based on the results of the first phase; we will examine how potential
changes to taxes on Texas road users would affect the tax burden on different vehicle classes. Also planned for the
second phase are certain refinements to our models and databases.

17. Key Words 18. Distribution Statement
Highway cost allocation in Texas No restrictions. This document is available to the public through the
National Technical Information Service, Springfield, Virginia 22161.
19. Security Classif. (of 20. Security Classif. (of this page) 21. No. of pages 22. Price
report) Unclassified 166
Unclassified
Form DOT F 1700.7 (8-72) Reproduction of completed page authorized

TEXAS HIGHWAY COST ALLOCATION STUDY

by

David M. Luskin, Alberto Garcia-Diaz, C. Michael Walton, and Zhanmin Zhang

Research Report 1810-2

Research Project 0-1810
Highway Cost Allocation in Texas

Conducted for the

TEXAS DEPARTMENT OF TRANSPORTATION

in cooperation with the

U.S. DEPARTMENT OF TRANSPORTATION
FEDERAL HIGHWAY ADMINISTRATION

by the

CENTER FOR TRANSPORTATION RESEARCH
Bureau of Engineering Research
THE UNIVERSITY OF TEXAS AT AUSTIN

and the

TEXAS TRANSPORTATION INSTITUTE
THE TEXAS A&M UNIVERSITY SYSTEM

October 2000
Revised October 2002

DISCLAIMERS
The contents of this report reflect the views of the authors, who are responsible for the facts and
the accuracy of the data presented herein. The contents do not necessarily reflect the official
views or policies of the Federal Highway Administration or the Texas Department of
Transportation (TxDOT). This report does not constitute a standard, specification, or regulation.

There was no invention or discovery conceived or first actually reduced to practice in the course
of or under this contract, including any art, method, process, machine, manufacture, design or
composition of matter, or any new and useful improvement thereof, or any variety of plant,
which is or may be patentable under the patent laws of the United States of America or any
foreign country.

NOT INTENDED FOR CONSTRUCTION, BIDDING, OR PERMIT PURPOSES

C. Michael Walton, P.E.
Research Supervisor

ACKNOWLEDGMENTS
The authors acknowledge the assistance provided by the TxDOT project directors for this
research, A. Luedecke (TPP) and subsequently Wayne Dennis (TPP). Other TxDOT staff who
helped out are too many to mention individually. In the revenue allocation analysis, we received
valuable assistance from Doug Freer and Bob Mattheisen of the Texas Comptroller’s office,
from Kevin Rohlwing of the International Tire and Rubber Association. Others who helped us
include Jim March and other staff of the FHWA, and the team that developed the State Highway
Cost Allocation software for the FHWA, in particular Joe Stowers of Sydec, Inc. and Roger
Mingo of R.D. Mingo and Associates. We also thank several current and former graduate
students for their sterling contributions to the research for and drafting of this report. Dr. Chiung-
Yu Chiu and Mr. Alberto Miron assisted with the revenue allocation analysis while graduate
students in Civil Engineering at the University of Texas at Austin. At Texas A&M University,
several doctoral candidates in Industrial Engineering worked on the cost allocation analysis: Dr.
DongJu Lee, Mr. Jeffrey Warren, and Mr. Jaewook Yoo.

Research performed in cooperation with the Texas Department of Transportation and the U.S.
Department of Transportation, Federal Highway Administration.

TABLE OF CONTENTS

INTRODUCTION....................................................................................................................1
1. HIGHWAY COST ALLOCATION STUDIES: ISSUES.............................................2
1.1 General Issues.............................................................................................................2
Coverage of Levels of Governments......................................................................2
Definition of Highway User Groups......................................................................3
Analysis Year.........................................................................................................6
1.2 Issues in Revenue Allocation.....................................................................................6
Revenues Used for Non-Highway Purposes..........................................................6
Which Taxes Should be Considered?.....................................................................7
Revenues Entering the Highway Account of the Federal Highway Trust Fund ...8
Interstate Travel......................................................................................................9
1.3 Issues in Cost Allocation..........................................................................................11
Equity...................................................................................................................11
Common Costs.....................................................................................................11
Number of Lanes..................................................................................................12
2. REVENUE ALLOCATION ANALYSIS......................................................................13
2.1 State Taxes................................................................................................................13
Registration Fee.....................................................................................................13
Fuel Taxes..............................................................................................................15
Motor Oil Tax........................................................................................................18
2.2 Federal Taxes............................................................................................................19
Fuel Taxes..............................................................................................................19
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Sales Tax on Heavy Trucks and Trailers...............................................................20
Heavy Vehicle Use Tax.........................................................................................20
Tire Sales Tax........................................................................................................21
2.3 Results........................................................................................................................21
2.4 Sensitivity Tests.......................................................................................................22
3. COST ALLOCATION ANALYSIS...............................................................................33
3.1 Climatic Regions.......................................................................................................33
3.2 Data Sources.............................................................................................................33
3.3 ADT VS VMT...........................................................................................................35
3.4 Cost Components......................................................................................................36
3.5 Flexible Pavement Construction Costs...................................................................36
Pavement Layers and Initial Serviceability Index................................................36
Pavement Material Costs......................................................................................37
ESALS..................................................................................................................38
Model for Pavement Construction Costs..............................................................38
3.6 Rigid Pavement Construction................................................................................41
3.7 Bridge Construction Costs.....................................................................................43
3.8 Flexible Pavement Rehabilitation and Maintenance...........................................44
3.9 Number of Lanes.....................................................................................................45
3.10 Shoulder...................................................................................................................45
3.11 Cost Estimates.........................................................................................................46
3.12 The Variable-Number-of-Lanes Scenario............................................................46
The Proposed Approach......................................................................................47
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Base Lanes and Additional Lanes.......................................................................47
3.13 Pavement Cost Allocation......................................................................................48
3.14 Cost Summary.........................................................................................................52
4. EQUITY ANALYSIS.......................................................................................................55
4.1 Comparisons with Other Studies............................................................................57
5. DIRECTIONS FOR FUTURE RESEARCH................................................................59
5.1 Fundamental Shifts in Direction............................................................................59
5.2 Modifications to Cost Analysis..............................................................................60
APPENDIX A. HIGHWAY SECTION SAMPLES..........................................................61
APPENDIX B. CALCULATION OF COMMON COSTS...............................................65
APPENDIX C. COST RESPONSIBILITIES....................................................................67
APPENDIX D. UPDATES TO THE RENU3 COST MATRIX.......................................85
APPENDIX E. DIVISION OF PAVEMENT CONSTRUCTION COSTS IN
BRIDGE CONSTRUCTION PROJECTS...............................................87
APPENDIX F. GENERALIZED METHOD......................................................................91
APPENDIX G. NUMBER OF LANES...............................................................................93
APPENDIX H. BRIDGE COST ALLOCATION EXAMPLE.........................................95
APPENDIX I. NUMBER OF LANES FOR TRAFFIC SAMPLES...............................97
APPENDIX J. COMMON COST SURVEY AND RESULTS.......................................101
APPENDIX K. THE PROPOSED APPROACH FOR THE-
VARIABLE-NUMBER-OF-LANES SCENARIO................................103
APPENDIX L. ESALS PER VEHICLE PASS PAVEMENT
TYPE AND VEHICLE CLASS..............................................................109
APPENDIX M. FHWA SOFTWARE FOR STATE HCA.............................................121
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APPENDIX N. ESTIMATION OF VEHICLE NUMBERS AND
VEHICLE MILES OF TRAVEL............................................................131
REFERENCES.....................................................................................................................145
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