Alternative Approaches to the Taxation of Heavy Vehicles Applications Manual (1997) / Chapter Skim
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5.0 Administrative Efficiency
5.0 Administrative Efficiency
Pages 33-46
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From page 33... ...
For the evaluation of alternative tax options, all three types of administrative cost should be measured as incremental costs resulting from any tax or set of taxes that is being evaluated in comparison with all existing taxes and related programs that are a.~.~um~d to rontin11~ in effect for a base-case option. ~ Or- Amp, ~ .~ ~,,~,~- ^,, For existing taxes to be administered using existing procedures, administrative and enforcement costs can be estimated by analyzing agency budgets.
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From page 34... ...
Cambridge Systematics and Sydec win Pacific Rim Resources, Technical Memorandum No. 5 Administrative Costs of Oregon's Weight-Mile Tax, prepared for the Oregon Legislative Revenue Office, the Oregon Public Utilities Commission, and Me Oregon Depart lent of Transportation, Salem, Oregon, January 1996, pp.
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From page 35... ...
. ""","" i.~.~.E~ 0 Cambridge Systematics, Inc.
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From page 36... ...
Expenditures Divide TA in thirds to: · Tax administration · Economic regulation · Transportation safety Allocate tax administration share among taxes: · Weight-Mile Tax, 85% · Other taxes, 15% Tax Aclministration Share of TA Expenditures Weight-Mile Tax TA 36 Cambridge SystemaNcs, Inc.
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From page 37... ...
Expenditures Divide PEA costs among PUC programs: · Transportahon, 72% · Other, 28% Divide transportation PEA share in thirds to: · Tax administration Economic regulahon Transportahon safely Divide tax administration P&A among taxes: · Weight-Mile Tax, 85% · Other taxes, 15% Transportation P&A Expenditures Tax Administration P&A Expenditures Weight-Mile Tax P&A Expenditures WeighI-Mile Tax Administration Cost = 0 + 0 + ~ + 0 Source: Cambridge Systematics and Sydec with Pacific Rim Resources, Technical Memorandum No. 5 - Administrative Costs of Oregon's Weight-Mile Tax, prepared for the Oregon Legislative Revenue Office, the Oregon Public Utilities Commission, and the Oregon Department of Transportation, Salem, Oregon, January 1996, Figure 2.1, pp.
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From page 38... ...
Source: Cambridge Systematics and Sydec win Pacific Rim Resources, Technical Memorandum No. 5- Administrative Costs of Oregon's Weight-Mile Tax, prepared for Me Oregon Legislative Revenue Office, Me Oregon Public Utilities Commission, and Me Oregon Department of Transportation, Salem, Oregon, January 1996, p.
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From page 39... ...
These include staff time spent recording license plate numbers and transmitting them to the PUC, and time spent issuing citations for violations of WMT requirements. The table in the first part of Exhibit 5.2 shows the total costs for the various units of the PUC responsible for activities related to the WMT tax, along with breakdowns by major category.
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From page 40... ...
Alternatives to the Taxation of Heady Vehicles Applications Manual - Administrative Efficiency EM ~En O ~ 0 O ~ 0 0 ~ ~u, .> _.
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From page 41... ...
Avoidable cost estimates should also take into account the costs of administering alternative taxes or tax increases that wouic3 occur under any alternative tax option. The basic approach in estimating avoidable costs and new incremental costs is to review every function and every line item in ah relevant budget accounts and to answer the following types of questions: I
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From page 42... ...
Compliance activities requires! by motor carriers include the following: · Registration - Costs of fining out forms on vehicles and firms; · Notification- Costs associated with informing the state of all configurations and operating weights in which a given power unit operates; · Recording- Accurate tracking of total mileage per truck for all operations within each state for each configuration; Reporting - Preparation of periodic reports on miles operated, fuel consumed, and fuel taxes paid; Permit Fees - Preparation and submission of applications for trip permits, fuel permits, oversize/overweight permits, etc.; and Audit- Assignment of the carriers' staff to assist the auditors during the periodic auditing process and storage of detailed vehicle records required for the audits.
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From page 43... ...
3 Cambridge Systematics and Sydec with Pacific Rim Resources, Oregon Weight-Mile Tax Study, Final Report, prepared for Me Oregon Legislative Revenue Office, the Oregon Public Utilities Comoussion, and the Oregon Department of Transportation, February 1996, Chapter 4. Cambridge Systen~atics, I?
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From page 44... ...
The resulting distribution is summarized in the table below: Carriers Surveyed in Oregon WeighI-Mile Tax Study Size Motor Carrier Type Small Medium Large Total Interstate 7 10 11 28 Intrastate 10 8 10 28 Private 5 6 4 15 Commercial 12 12 17 41 Truckload 5 5 9 19 Less-than-Truckload 0 3 5 8 Both 4 6 5 15 Log 6 3 0 9 Dump 2 2 2 6 Source: Cambricige Systematics and Sydec with Pacific Rim Resources, Technical Memorandum No. 1- Compliance Costs of Oregon's Weight-Mile Tax, prepared for the Oregon Legislative Revenue Office, the Oregon Public Utilities Commission, and me Oregon Department of Transportation, Salem, Oregon, updated February 1996, p.
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From page 45... ...
The last approach to estimating compliance costs listed above is audits of the compliance procedures used by a sample of firms. This approach probably has never been used in any heavy-vehicle tax study; however, it probably is the only way of obtaining accurate cost estimates, and it may be an appropriate subject for a future research project.
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From page 46... ...
Alternatives to the Taxation of Heady Vehicles Applications Manual - Administrative Efficiency 46 Cambridge Systematics, Inc.
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