The "Driveway Tax"

Discussion in 'Economics' started by MattF, Aug 24, 2010.

  1. MattF


    Mission City, KS

    Mission homeowners and businesses are going to pay for roads in a new way that officials believe breaks ground in the Midwest.

    Instead of relying on sales and property taxes for roads, the city will start charging fees based on how much traffic properties produce.

    The City Council on Wednesday night approved a new fee charging every homeowner $72 a year and small businesses $3,558 a year beginning in December.

    Larger businesses that generate lots of traffic, such as Mission Bank, could pay $5,659 a year. A drive-thru fast food restaurant could pay $12,200 a year. Target could pay as much as $64,750 annually.

    City officials and some local experts believe the fee, sometimes called a “driveway tax,” would be the first in Kansas and possibly in the entire Midwest.

    The new fee is aimed at properties that produce the most traffic and put the most wear and tear on roads. Big-box stores are going to be charged more than residential homes, which don’t generate as much traffic.

    It affects roughly 5,650 developed or developable properties, including churches, schools and government buildings that are tax-exempt but still generate traffic.

    Engineering formulas estimate that a single-family home generates about 9 1/2 vehicle trips a day. The Target store, meanwhile, generates about 8,500 trips a day. McDonald’s is predicted to produce 2,700 trips.

    The fee is expected to raise $1.2 million a year to help finance $38 million in road improvements during the next 10 years. It also will help fund a new express bus service between Overland Park and the Country Club Plaza that will run through Mission.

    City officials said they desperately needed the money for deteriorating streets. But some residents said it’s a bad time economically for what’s essentially a tax increase.

    The fee has had limited use across the country, but has become popular in Oregon, where it’s been adopted in at least 18 cities.

    The fee is gradually spreading nationwide because it’s a more direct way to pay for road costs by charging the people and businesses that create the most traffic.

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  2. My only question is...

    Why do we park on driveways, and drive on parkways?
  3. Hello


    They already have a similar program in toronto where you leave a device on your windshield which will click in the second you enter the toll highway and click out when you exit it, at the end of the month you get sent a bill for how much you used the road. These roads are ran by private companies, and they are a lot nicer.

    I would be all for it personally as long as the money actually gets deducted from the state and city tax rate, and the roads are run by private enterprises. Though i doubt they will.

    These privatised roads are always clean and well maintained, cost a hell fo a lot less, and you dont see 10 different city workers standing around with their thumb up their ass working on them costing us 40 dollars an hour per employee.