Georgia’s introduction of high occupancy toll (HOT) lanes on Interstate 85 at the beginning of the month has already turned into a public relations disaster. During rush hour, motorists found themselves stranded in the general purpose lanes as the adjacent HOT lane — constructed and maintained with their tax dollars — were essentially unused. Drivers balked at paying the stiff $5.40 entrance tax for permission to enter, leaving the existing lane space to go to waste. Governor Nathan Deal (R) intervened swiftly on October 6 to order the State Road and Tollway Authority (SRTA) to lower the cost of using the toll lane.
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Category: Taxes
The main tool for the government’s crusade to get one million plug-in cars on the road by 2015 is the “Qualified Plug-In Electric Vehicle Tax Credit,” a credit that returns between $2,500 and $7,500 to purchasers of a qualifying vehicle. To qualify for the minimum $2,500 credit, a vehicle must have a traction battery with a minimum of four kW/h, and the credit adds an additional $417 in credits for every kW/h above the minimum. Why? Well, you might think that it’s because the DOE has done its research and determined that larger battery packs deliver more social benefits… at least until the 16kW/h limit (the exact size of the Chevy Volt’s battery), where the credit tops out at $7,500. But according to new research by Carnegie Mellon’s Jeremy Michalek, that basic assumption doesn’t appear to be true at all. In fact, his latest paper argues that the government would actually be better off subsidizing smaller, not larger, battery packs.
Motorists issued a traffic ticket in Massachusetts will have to pay money to the state whether or not they committed the alleged crime. According to a state supreme court ruling handed down yesterday, fees are to be imposed even on those found completely innocent. The high court saw no injustice in collecting $70 from Ralph C. Sullivan after he successfully fought a $100 ticket for failure to stay within a marked lane.
Arizona must subsidize those who ride on buses, vans and light rail, regardless of the desire of state lawmakers or voters to do otherwise. US District Court Judge David G. Campbell on Friday overturned a state law enacted in March last year to curtail excessive spending by slashing such subsidies. The legislature canceled the Local Transportation Assistance Fund, which had doled out $127 million in taxpayer cash since 1998 to various mass transit programs using funds from the Powerball lottery.
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Companies that operate red light cameras and speed cameras are facing increasing opposition across the country. In response, the firms have adopted a strategy of suing cities that have second thoughts about continuing to use cameras in their community. They have also been going after their own customers to collect as much revenue as possible.
On December 1, Redflex filed suit against Tempe, Arizona in Maricopa county Superior Court claiming the city owed $1.3 million in per-ticket fees for each driver mailed a photo ticket who decided to go to traffic school. The city claims it only collected $1.8 million in revenue from the program, mostly because last year’s payment rate was just 31 percent. Drivers realize in increasing numbers that tickets in the state can be ignored unless they are properly served.
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California has backed up its strict emissions standards for years now with a $5,000 tax credit for electric, hybrid and fuel cell vehicles, which when combined with a $7,000 federal tax credit can often make those vehicles nearly as affordable as “regular” cars. But, reports Automotive News [sub], that state credit has fallen victim to California’s budget woes and oversubscription, and has been cut in half from $5,000 to $2,500. According to the report:
high demand exhausted the program’s funding last month. The Los Angeles Times reported Thursday that about 500 consumers who bought electric cars such as the Nissan Leaf or Tesla Roadster are on a waiting list and will collect the $2,500 rebate.
To deal with growing demand, the pool of money to fund the rebates was increased to between $15 million and $21 million for CARB’s current fiscal year ending June 30, 2012, according to CARB’s announcement. A total of $11.1 million was allocated in the program’s first two years, according to CARB spokeswoman Mary Fricke.
The increased cash pool and lowered rebate amount are aimed at making the incentive available to more consumers, according to CARB’s Web site. The changes are projected to fund about 6,000 rebates for consumers who apply for the program on a first-come basis, Fricke said.
Now California “green car” intenders not only get a reduced tax credit, but they also don’t get free access to the HOV lane anymore. It’s almost as if California wants “green” vehicles to succeed or fail on their own terms…
Public employees can take rides on toll roads at taxpayer expense, but these trips are not subject to disclosure according to a ruling Tuesday by the Pennsylvania Commonwealth Court. A three-judge panel denied the freedom of information request of the Harrisburg Patriot-News for E-ZPass transponder usage information data by for employees of the Pennsylvania Turnpike. On October 21 the paper sought details on the 2000 toll collectors who do not pay for use of the road, regardless of whether the travel was job related.
Voters in Washington state will decide in November whether to slow down the state’s push toward tolling. Initiative 1125 prohibits lawmakers from diverting toll road revenue and other levies on motorists toward non-transportation purposes. It also forces politicians to vote directly on any toll hikes.
“If there’s going to be tolls, there has to be accountability and transparency,” initiative co-sponsor Tim Eyman of Voters Want More Choices wrote in an email. “It’s simply not too much to ask for taxpayers who are being forced to pay twice for their roadway infrastructure (the highest gas tax in the nation and tolls) that the legislature be required to follow the law and abide by the Constitution.”
The highest court in Massachusetts believes there is no due process problem with charging motorists $300 to challenge a $5 or $15 parking ticket. On Thursday, the Supreme Judicial Court ruled that the appeal procedures in the city of Northampton satisfied constitutional requirements even though motorists were denied an in-person hearing to contest the legitimacy of a citation. The city only allowed people either to pay the fine in full or send “a signed statement explaining his objections.”
Opponents of automated ticketing machines in Monroe, Washington have turned to a new tactic in battling a city council that refuses to give up the use of red light cameras and speed cameras. Instead of engaging the city and a wealthy traffic camera company in a costly legal battle, the group BanCams.com decided Wednesday to shame the council at every election until officials follow the public will.
The battle over the Houston, Texas red light camera program returned to the legal spotlight Monday. A majority of voters agreed with Francis M. Kubosh and Randall Kubosh in November that the automated ticketing machines should be removed, but a federal judge intervened earlier this month and overturned the election (view ruling). The Kuboshes filed a reply brief with the US Court of Appeals for the Fifth Circuit Monday seeking to restore the result of the public vote.
Not satisfied with impoverishing residents and unwary visitors with $500 automated tickets for being a tenth of a second late at a light, California’s legislators are moving a new bill allowing cities to reduce many posted speed limits by 5 mph. The lower limits will, in turn, allow them to shorten yellow lights, which will produce more red light camera tickets (four of the sponsoring cities have red light cameras).
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The average price of regular unleaded gasoline was $3.96 this week, an increase of 38 percent over the same time last year. US Senator Rand Paul (R-Kentucky) on Tuesday proposed to temporarily reduce that cost by 18.4 cent cents by suspending the federal gas tax. Under the freshman lawmaker’s plan, the highway trust fund would be replenished by reducing payments made to foreign governments.
“Let’s have a gas tax holiday,” Paul said in a floor speech. “Let’s take the money from foreign aid and let’s give it back to the American people who worked hard to earn it…. That would help people, that would lower the price of gasoline and that would be a stimulus to the economy.”
Speaking at Nissan’s Smyrna, TN electric car factory, Transportation Secretary Ray LaHood noted that his staff is working with Congress to make federal tax credits for plug-in car purchases available as a rebate on the dealer level, saying
We’d like for people to get a $7,500 rebate on the day they buy the Leaf. We’re doing a lot of talking about it. When you give people that incentive to buy a battery-powered car, they’ll do it. We know these incentives help.
Speaking to Automotive News [sub], LaHood even went as far as to argue that the new direction for the tax credits, which were previously only claimable when filing taxes, would be successful for the reason that it would make the credits more like the Cash For Clunkers program. Apparently LaHood has completely forgotten how riddled with waste, inefficiency, fraud, confusion, delays, unintended consequences and all-purpose madness that program was. And that’s just scraping the surface. Foolish as it is to subsidize vehicles during the “fleecing the early adopters” phase of a new technology rollout (perhaps we should be saving stimulus for the inevitable “trough of disappointment”?), making those credits available at the dealer level is even worse, increasing the hype and incurring C4C-like downsides along the way.
Backroom dealing will determine whether speed camera use will become common in Missouri. The General Assembly yesterday agreed to convene a conference committee to iron out differences between House and Senate-passed versions of an omnibus transportation bill that cleared the state Senate on Tuesday. Among the the items up for debate is language that would allow any governmental jurisdiction to set up as many photo radar units as it pleases without any meaningful limitations on use.














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