In its 15th annual survey on federal transportation tax revenue, San José State University’s Mineta Transportation Institute asked Americans about their views on various fuel tax increases and new mileage fees. A majority is open to certain mileage fees, but nearly three-quarters support a fuel tax increase under specific conditions.

Survey respondents were asked if they support a 10-cent increase to the current 18-cent federal gas tax. They were given six scenarios on how the revenue would be used:

• General transportation
• Reducing local air pollution from transportation
• Decreasing the transport system’s contribution to global warming
• Maintaining streets, roads, and highways
• Reducing accidents and improving safety
• Reducing traffic congestion

Only 35% support a fuel tax increase for general transportation. However, support jumps to over 70% if the revenue is allocated for road maintenance or improving safety. Around 60% support a tax increase if the funds address environmental issues or congestion.

People are less enthusiastic about a mileage fee. Respondents were asked about replacing the federal fuel tax with a mileage-based fee. Only 39% support a flat-rate fee of 3 cents per mile for all vehicles. However, half favor a variable green-rate fee, where the average rate is 3 cents per mile, with lower rates for less polluting vehicles and higher rates for more polluting ones.

Support for both a flat-rate and green-rate fee has significantly increased since 2010. Back then, only 22% supported a flat-rate fee, and 34% supported a green-rate fee.

The survey also shows more support for a mileage fee on top of the federal fuel tax for commercial vehicles. Nearly 60% support an additional mileage fee for truckers, and 53% are okay with an additional fee for taxis and ride-hailing services like Uber and Lyft.

There isn’t much support for giving electric vehicles preferential treatment. Nearly half of respondents believe electric vehicles should be charged the same mileage fee as fossil fuel-powered vehicles.

If a mileage fee were implemented, people prefer incremental payments. Nearly half favor paying each time they fuel up or charge, about a third prefer a monthly bill, and around 20% like the idea of an annual bill.

The survey also highlights the general lack of knowledge about the federal fuel tax and mileage fees. Only 2% of respondents knew that the federal gas tax hasn’t been raised in over 20 years, and about 60% were unaware of mileage fees. Despite this, more than half have privacy concerns about a mileage fee, and half consider it fairer than fuel taxes.

While the Mineta Transportation Institute’s survey shows growing support for a mileage tax over the past 15 years, a simple majority may pose a challenge for states seeking new transportation funding methods. As vehicles become more fuel-efficient, fuel tax revenue is decreasing.

According to the Tax Foundation, only three states generate enough dedicated revenue to fund transportation spending. Most states have considered a mileage fee, with four states currently running active programs for passenger vehicles and four targeting heavy commercial vehicles.

Michigan is the latest state to explore a mileage fee, launching a pilot program for a mileage-based road-usage tax next June. The state faces an estimated $3.9 billion annual deficit in road funding.

Source: Land Line

The post Americans Show Growing Support for Fuel Tax Increases Over Mileage Fees, Survey Finds appeared first on Truck Drivers USA.

“The bookkeeping, quarterly, yearly filings and specialized strategic planning we have always offered to the Transportation industry will be boosted to offer larger trucking groups Fractional CFO services,” stated a news release. “Companies need the service a CFO provides without the costs of a full time CFO in house and we solve that problem.”

In response to the evolving demands of the industry, the company now offers tax resolution services aimed at providing assistance to truckers and trucking companies seeking a fresh start and aiming to maintain compliance with tax regulations, as outlined in a recent news release.

Taxes4Truckers was started 28 years ago by the daughter of an OTR Trucker who has experienced firsthand the challenges of the industry. Her tax business initially centered around serving truckers and has since remained dedicated to this demographic. With her firsthand understanding of the unique circumstances faced by truckers, she is an expert at providing tailored tax solutions to help them minimize their tax burden.

These additions signify the truck driving industry’s commitment to offering comprehensive solutions tailored to the unique financial challenges faced by professional drivers.

“Taxes4Truckers is the financial copilot to the owner-operator driver and the financial business advisor to the small growing trucking company,” stated the news release. “Industry knowledge means successful professional partnerships. Drivers are leaving this industry not because they can’t hold the wheel or step on the gas. They leave the industry because they don’t handle the business properly.”

Source: The Trucker

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Known as the Tax Relief for American Families and Workers Act of 2024, the bill secured an impressive 357-70 vote in the House on Jan. 31. It holds crucial provisions that amplify financial advantages for trucking enterprises, particularly in the realms of accelerated depreciation for capital investments and more generous deductions for interest expenses. These provisions are extensions of expiring benefits initially introduced in the 2017 Tax Cuts and Jobs Act during the Trump administration.

Ed Gilroy, the Chief Advocacy and Public Affairs Officer for the American Trucking Associations, hailed the legislation for advancing key priorities in the trucking industry, emphasizing its role in stimulating much-needed investments in the supply chain.

“We support this bipartisan effort that will pave the way for greater freight capacity, efficiency and innovation while strengthening small businesses and fostering good-paying jobs in the trucking industry,” Gilroy said.

Notably, the bill restores and extends the 100% expense for new equipment.

Under the current tax framework, the maximum allowable expense for qualifying property placed in service is $1 million for the taxable year.

According to the new tax plan’s explanation, “The $1 million amount is reduced by the amount by which the cost of such property placed in service during the taxable year exceeds $2.5 million.”

The new provision elevates this figure to $1.29 million, with adjustments for inflation for taxable years beginning after 2024.

“The provisions related to expensing assets is exactly what is needed for someone buying a new truck or rig,” said James Lucier, a tax policy expert and a principal with Capital Alpha Partners, a public policy research firm. “It would be quite helpful for independent truckers and small businesses involved in trucking.”

The legislation also extends the 100% bonus depreciation deduction for property placed in service between Dec. 31, 2022, and Jan. 1, 2026—an aspect particularly advantageous for owner-operators and smaller carriers, as highlighted by Barry Fowler, founder of Taxation Solutions Inc., specializing in tax provisions affecting smaller carriers.

“If you’re considering buying another truck, you can take that 100% depreciation expense in the first year — that’s definitely a benefit,” Fowler said.

Fowler, however, emphasizes the dependence of potential benefits on an individual’s taxable income.

“You may not want to take 100% depreciation expense if you’re in a lower tax bracket,” he said. “That’s something a tax preparer can help you navigate.”

Despite the bill’s bipartisan support in the Senate, its fate remains uncertain, with GovTrack.us assigning a 34% chance of enactment. This mirrors the legislative landscape’s inherent challenges, as only around 21% of bills that navigated past committees in the previous Congress ultimately became law, according to the nonprofit organization tracking pending legislation. The trucking industry will undoubtedly keep a close eye on these developments as the legislation heads to the Senate floor for consideration.

Source: Freightwaves

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