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Presentation to the Joint Study committee on Critical Transportation Infrastructure Funding

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. 38%. 1,764,682,300.

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Presentation to the Joint Study committee on Critical Transportation Infrastructure Funding

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  1. Presentation to the Joint Study committee on Critical Transportation Infrastructure Funding Trucking in Georgia: Big Numbers, Big Impact October 1, 2015

  2. Trucking in Georgia: Big Numbers, big impact 85% 76% 213,000 $773,000,000 38% 1,764,682,300

  3. Manufactured Freight Moved in Georgia • 85% 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. • 76% Source: American Transportation Research Institute

  4. Future Freight Distribution Source: American Transportation Research Institute

  5. Ports, Freight movement, and Economic Competitiveness

  6. Savannah500 Truck Sample At 24 Hours

  7. Same 500 Trucks After 7 Days

  8. 38% Fuel Tax Rates GA ranks 18th Source: American Petroleum Institute

  9. But In Fuel Taxes Going To Transportation… Only half of the sales tax on fuel is dedicated to transportation. GA ranks 18th GA actually ranks 47th Source: American Petroleum Institute

  10. 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 state’s citizens Diversion:Also Big Numbers, Big Impact

  11. 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

  12. 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 DOESN’T 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.)

  13. 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.)

  14. 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) • 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 The IFTA ISSUE (cont.)

  15. 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 won’t go to zero Most alternative fuels can be taxes on an energy-equivalent basis Fix Diversion and don’t give up on fuel tax

  16. 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 issuesfuel tax doesn’t have -evasion issues Fix Diversion and don’t give up on fuel tax

  17. 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 Georgia’s future growth Thank you for your time and your consideration Conclusions

  18. Questions ?

  19. Presentation to the Joint Study committee on Critical Transportation Infrastructure Funding Thank You Edward Crowell ed@gmta.org

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