Presentation to the Joint Study committee on Critical ...

Presentation to the Joint Study committee on Critical ...

PRESENTATION TO THE JOINT STUDY COMMITTEE ON CRITICAL TRANSPORTATION INFRASTRUCTURE FUNDING Trucking in Georgia: Big Numbers, Big Impact October 1, 2015 TRUCKING IN GEORGIA: BIG NUMBERS, BIG IMPACT 85% 76% 213,000 $773,000,000 1,764,682,30 0 38%

MANUFACTURED FREIGHT MOVED IN GEORGIA 85% Rail Intermodal Truck Air Water Inbound 23,914,889 1,072,321 135,135,27

9 385,728 1,129,210 Outbound 18,865,376 820,296 129,759,56 9 18,841 615,600 Total 42,780,265

1,892,616 264,894,84 8 404,569 1,744,811 13.7% 0.6% 84.9% 0.13% 0.6 Modal Share

More than 19,000,000 truck trips delivering freight through Georgia and to 100% of Georgia communities, 76% of which are served only by truck. Source: American Transportation Research Institute 76% FUTURE FREIGHT DISTRIBUTION Source: American Transportation Research Institute PORTS, FREIGHT MOVEMENT, AND ECONOMIC COMPETITIVENESS SAVANNAH 500 TRUCK SAMPLE AT 24 HOURS SAME 500 TRUCKS AFTER 7 DAYS 38% FUEL TAX RATES

Comparative State Fuel Tax Rates (cents per gallon) 50 GA ranks 18th 45 40 35 Cents 30 25 20 15 10 5 0 NY CT

I M IL W A W V RI PA OR N M

KY NE Excise Tax Source: American Petroleum Institute ID UT D M Other Tax DE CO AR

AL TX NH NM O M SC W Y State & Local Taxation of OnHighway Gasoline & Diesel Fuel in Georgia THREE COMPONENTS

Excise Tax Prepaid State Tax $0.075 per Gallon (fixed) 4% of Average Retail Price (less taxes) 3% - motor fuel tax - DOT 1% - state sales tax (general fund) (variable) Revised Jan1 and July 1 each year interim revision if price changes by 25% STATE TAXES Prepaid Local Tax Use same sales price as Prepaid State Tax applied to local county rates

Revised Jan1 and July 1 each year interim revision if price changes by 25% LOCAL TAXES BUT IN FUEL TAXES GOING TO TRANSPORTATION Comparative State Fuel Tax Rates (cents per gallon) X Only half of the sales tax on fuel is dedicated to transportation. GA ranks 18th 50 GA actually ranks 47th 45

40 35 Cents 30 25 20 15 10 5 0 NY CT I M IL W

A W V RI PA Source: American Petroleum Institute OR N M KY NE

Other Tax ID UT D M Excise Tax DE CO AR AL TX NH

NM O M SC W Y DIVERSION: ALSO BIG NUMBERS, BIG IMPACT Diversion generally costs the state more than $500,000,000 in road taxes a year (1% of state sales tax and 2% to 4% in local taxes) Georgia tax laws create an even more onerous and wasteful system for interstate trucking Hurts trucking companies of all types, fuel resellers and states citizens

THE IFTA ISSUE Cars pay tax where they purchase fuel Trucks pay tax where they operate Georgia signed into International Fuel Tax Agreement decades ago but never changed tax system to meet requirements Truck operators buying in Georgia pay effectively the highest tax in the nation, but state gets no benefit THE IFTA ISSUE (CONT.) Truck operator buys 1,000 gallons in South Carolina Uses 500 gallons in SC and 500 gallons in Georgia Reports usage to SC; receives a credit for all taxes paid in SC but due in GA SC sends a check to GA BUT IT DOESNT WORK THE OTHER WAY Truck operator buys 1,000 gallons in Georgia Uses 500 gallons in SC and 500 gallons in GA

Reports usage to GA; receives credit only for state taxes paid (not local). Trucker has to write additional check to pay the difference to SC THE IFTA ISSUE (CONT.) Results of this system? Truckers avoid buying in GA if possible Drivers penalized for GA purchases Businesses Avoid Georgia Some fuel retailers have publicly vowed no expansion in GA until this practice changes Georgia fuel resellers, convenience stores and employees lose Sales in GA lower than nearby stores on other side of borders THE IFTA ISSUE

(CONT.) Georgia is the only state in the nation with this issue but it can be fixed and it will produce increased revenue if fixed Solution(s) A. Make all taxes on Diesel excise tax only (cents per gallon) or B. Make all sales taxes collected on Diesel state sales tax (not local) Then distribute to local governments net due after IFTA debits and credits FIX DIVERSION AND DONT GIVE UP ON FUEL TAX Return fuel tax to true user fee raises money before any tax increase Diesel is in for the long haul (energy density, ease of handling, safety, etc.) Gasoline wont go to zero Most alternative fuels can be taxes on

an energy-equivalent basis FIX DIVERSION AND DONT GIVE UP ON FUEL TAX Electric vehicles can be taxed on a subscription basis (license fees) Consultant touted Silver bullets such as VMT or tolling have real negatives -far less efficient than fuel tax -suffer from lower use just as fuel tax (ITR just went bankrupt) -data and privacy issues fuel tax doesnt have -evasion issues CONCLUSIONS Diversion is major issue that costs both money and credibility It has real and negative impacts Solving it will raise more money without increasing user fees The trucking industry; which employs Georgians is ready to help and is a vital part of Georgias future growth

Thank you for your time and your consideration Questions ? PRESENTATION TO THE JOINT STUDY COMMITTEE ON CRITICAL TRANSPORTATION INFRASTRUCTURE FUNDING Thank You Edward Crowell [email protected]

Recently Viewed Presentations

  • Reproduction & Embryology

    Reproduction & Embryology

    Look at figure 11-17. How is meiosis different in men and women? Male = produce 4 gametes (sperm) Female = only one gamete (out of 4) is actually involved in reproduction. BECAUSE the division at the end of meiosis 2...
  • Transformational Educators - University of Phoenix

    Transformational Educators - University of Phoenix

    Dr. Trish Champion & Dr. Linda Gutsch * ... (1862-1945) was the first woman to earn a Ph.D. (Geology) from Johns Hopkins University (1893) where she sat behind a screen so as to not disrupt male students during her graduate...
  • Sharing Global Best Practice in Life Planning Education and ...

    Sharing Global Best Practice in Life Planning Education and ...

    starts with Myers-Briggs dichotomies and adds archetypes from Jungian theory as well as some from the Big Five. At the end, you'll be labeled with one of 16 personality types with cool names like "Mediator," "Commander" and "Defender."
  • 干旱区平原绿洲水均衡模型 - 東京大学

    干旱区平原绿洲水均衡模型 - 東京大学

    Type3 Type2 Also we assume it is Dupuit flow, and use the Dupuit equation to estimate groundwater exchange Tarimu River Akesu River Area: 12,000km2 Precipitation: 30-90mm/year Water-surface evaporation : 1100-1300mm/year Shaliguilanke Xiehela Alaer Legend Station Reservoir Riverway Comparison of the...
  • NSP Annual Board Meeting 6/23/12 - easternsierraregion.org

    NSP Annual Board Meeting 6/23/12 - easternsierraregion.org

    Tim White & Staff David Johe & Deb Endly Burt Mitchell & Bob Scarlett & Larry Bost Deb Endly-Chair Morgan Armstrong* Sheila Daly* Jodie Jeffers* Jeannine Mogan* Nancy Pitstick Tom Rabaglia Cathy Setzer Medical Advisors McNamara/Johe NSP Medical QA Plan...
  • Primer design for PCR cloning  special case for

    Primer design for PCR cloning special case for

    Primer design for PCR cloning • special case for when the insert is to be cloned • PCR also used for diagnostic (is gene present) • PCR also used to quantitate gene/transcript copy #
  • 16-6 Solving Problems with Coulomb's Law and Vectors

    16-6 Solving Problems with Coulomb's Law and Vectors

    16-6 Solving Problems with Coulomb's Law and Vectors Electrostatic force, or Coulomb's force is the force between 2 or more charged particles, at rest. Charges are considered to be point charges. The study of these forces and charges is called...
  • Gemma Downey Radiation Therapy Also called radiation oncology,

    Gemma Downey Radiation Therapy Also called radiation oncology,

    Gemma Downey Radiation Therapy Also called radiation oncology, radiation therapy is the use of ionizng radiation as part of cancer treatment to control malignant cells Adjuvant and Palliative Treatment Radiation Therapy may be used for adjuvant cancer treatment (supplemental treatment...