Category: Taxes

By on March 7, 2011

Wenatchee, Washington is suing to stop the public from circulating a petition that would thwart the use of red light cameras and speed cameras in the city of 28,000. In March 2009, Wenatchee officials signed a contract with American Traffic Solutions (ATS), and they claimed this agreement would be “impaired” if voters had a say in whether or not the program should continue, according to the complaint filed last Tuesday in a Chelan County court.

“The city seeks a declaration that the proposed Wenatchee Initiative No. 1 is invalid because it is beyond the scope of the initiative power and violates the Contract Clause of the United States Constitution and the Washington State Constitution,” Steve D. Smith, attorney for the city, wrote.

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By on February 28, 2011

After accepting more than three dozen campaign checks from registered photo enforcement lobbyists and other interested parties, Missouri’s attorney general on Thursday handed down a decision endorsing the use of automated ticketing machines despite significant legal controversy. Former Attorney General Jay Nixon stated when the city of Arnold started using red light cameras in 2005 that he believed tickets sent in the mail were not valid. The office of current Attorney General Chris Koster, however, issued a letter to state Senator Jim Lembke (R-St. Louis) defending the practice.

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By on February 23, 2011

Analysts are reporting that GM could announce full-year 2010 profits of over $5b tomorrow, although Q4 profits may have dipped to $1.06b. That would make its full-year results the best since a $6b profit in 1999, but Q4 results could be the second-worst since emerging from bankruptcy. Why the slowdown? Analysts give Bloomberg a number of possible explanations, including

  • GM’s spending on cars including the Chevrolet Volt plug-in hybrid and future products may lead to higher costs similar to those that restrained profits at Ford and Daimler AG.
  • Automakers are paying more for materials such as steel and are struggling to pass the costs to consumers amid a “somewhat weak” economy
  • Restructuring unprofitable European operations

Of all these dynamics, however, CEO Dan Akerson’s rush to revamp GM’s lineup and expand the applications of the Volt’s drivetrain could end up driving the most cost. Though GM is making a healthy profit again (and not paying taxes on it), an overly-ambitious speed-up in product cadence could combine with rising costs to slow The General back down (as they have already done to some extent at Ford). In any case, we will certainly have a better picture of GM’s financial performance tomorrow, when the firm’s results are announced.

By on February 16, 2011

Traffic camera vendor American Traffic Solutions showed no municipal love as it filed a breach of contract suit against Baytown, Texas on Monday. The St. Valentine’s Day complaint accused the city of failing to approve the mailing of an expected number of red light camera citations generated by the company.

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By on February 7, 2011

Senator Debbie Stabenow has introduced S. 3715, known as the Charging America Forward Act, which would extend tax credits for plug-in vehicles until 2014 and “front load” the credits, to create a dealership-level discount, among other provisions. Though inspired by President Obama’s call to put a million plug-in vehicles on the road by 2015, Stabenow’s website plays up a single, all-important angle to the bill

Michigan is already a leader in emerging hi-tech battery and electric car production. Other countries are acting to develop their own advanced vehicle markets because they realize the tremendous economic potential this new technology represents.  These initiatives will allow Michigan innovators to continue to out-compete the world and create new jobs here

Though the full text of the bill hasn’t hit Govtrack yet, the DetN reports that it’s chock full of plug-in subsidies, so it seems that Stabenow’s proposa is considerably more dramatic than the recent plug-in credit extension introduced by Rep Sander Levin. And that’s not necessarily a good thing…

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By on February 1, 2011

My home state of Oregon has the unfortunate distinction of pioneering the practice of pay-permile taxation, having studied the GPS tracking approach to road taxes in a pilot program back in 2005-2007. Originally, the track-and-tax scheme was envisioned as a replacement for the gas tax, but now it’s being raised as a way of taxing motorists who go without gasoline altogether. The Eugene Register Guard reports

A bill before the Oregon Legislature aims to deal with the government’s potential beefs with a growing fleet of cars and trucks that never stop for fuel at a gas station: that they don’t ever pay the gas tax that helps cover the cost of state and local road construction and maintenance.

Under House Bill 2328, those drivers would pay a “vehicle road usage charge,” starting with model year 2014 electric vehicles and plug-in gas-electric hybrids.

Proponents say the bill will build on lessons learned from the pilot testing, and avoids the legitimate concerns about pay-per-mile which were first raised by the pilot project’s report. But does taxing EVs actually make sense, or is this just the politically-palatable first step towards an Orwellian nightmare of GPS vehicle tracking? Meanwhile, doesn’t the State of Oregon give up to $750 in tax credits for EV purchases? Mixed messages much?

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By on February 1, 2011

The automated enforcement industry has suffered significant setbacks in the past several months. In November, voters in America’s fourth largest city, Houston, Texas, used the referendum process to outlaw automated ticketing machines. A number of California cities have been dropping red light camera programs after experiencing mediocre safety results. Now one of the key industry players, the Insurance Institute for Highway Safety (IIHS), is fighting back with a report released today claiming that with more red light cameras “a total of 815 deaths could have been avoided.” The IIHS report, however, did not actually consider a single red light camera accident.

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By on January 31, 2011

In October, Jefferson County, Missouri signed a contract with American Traffic Solutions (ATS) allowing the Arizona-based company to issue red light camera tickets in return for a cut of the profits. Now just three months later, the county council wants out of the deal. All seven members were unanimous in the desire to change direction, even signing a letter to lawmakers urging them to adopt a statewide ban on automated ticketing.

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By on January 27, 2011

Rep Sander Levin (D-MI) has introduced legislation which would increase the cap on consumer tax credits for plug-in electric vehicles.The current subsidy allows consumers to take a $7,500 taz credit, but caps the number of qualifying credits at 200k per manufacturer, but Levin’s bill would raise that to 500k units. Said Levin in a statement

Green vehicles represent the vanguard of automotive innovation, but they have to be economical for consumers and profitable for manufacturers. Raising the cap on this credit will help carmakers reach the demand and production scale necessary for long-term viability.

To which, his brother Senator Carl Levin, adds

The U.S. auto industry is poised for a technological explosion that promises to fundamentally change transportation here and around the world. But if we fail to support this revolution, workers in China, India, South Korea and our other competitors will build these vehicles instead of American workers.

The call to raise the cap for EV consumer tax credits was first publicly raised by GM’s Tom Stephens, who argued that 200k units was inufficient government support to keep the Volt viable until the second generation comes out. At the time, Rep Debbie Stabenow argued that credits should be “front-loaded” and deducted from the price of the vehicle at the dealership, but that proposal seems to have fallen b the wayside.

By on December 28, 2010

Speed camera operators in the UK are looking to hike costs for “educational courses” and redeploy cameras to more lucrative locations to address a growing budget deficit. The options for the Thames Valley Safer Roads Partnership were discussed in an August 11 strategy meeting, the minutes for which were obtained from a freedom of information request. The partnership consists of local police agencies, local council members, the courts and the staff who run the speed cameras themselves.

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By on December 22, 2010

Washington state’s attorney general confirmed Monday that the legislature may no longer pass authority to raise transportation tolls and fees to an unelected commission. In November, 64 percent of voters approved Initiative 1053 which stated that taxes must be approved by the vote of a majority in the state House and Senate.

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By on December 9, 2010

The last time we discussed the idea of “crash taxes,” it kicked off quite the debate. After all, it’s a question that cuts to the core of political philosophy: to what extent should individuals take responsibility for using public resources? As motorists, would we rather know that we’ll be taken care of in case of a crash, or would we rather have financial incentives to take care to not crash? Well, New York City has decided that, philosophy aside, it simply doesn’t have the money to send emergency responders to car crashes without charging some kind of fee. The WSJ reports

The FDNY plans to start sending out bills July 1. A vehicle fire or any other incident with injuries will cost $490. A vehicle fire without injuries will cost $415. And incidents without fire or injuries will cost $365. These charges apply to every vehicle involved in the incident.

Except, of course, when they don’t…

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By on December 8, 2010

Red light cameras are nowhere near as popular as they once were with Golden State municipalities. Loma Linda and Whittier became the most recent examples of California cities unplugging their automated ticketing machines after noting that the devices both failed to reduce accidents and generate the promised amounts of revenue.

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By on December 3, 2010

It seems that yesterday’s optimism about a possible end to the ethanol “Blender’s Credit” may have been somewhat premature, as Senate Budget Committee chair Max Baucus has now proposed extending the 45 cents per gallon tax credit at the lower rate of 36 cents per gallon. The ethanol industry has expressed disappointment, but says it will accept the proposal. Which, given the fact that the Blender’s Credit is opposed by groups as diverse as Friends Of The Earth and FreedomWorks, seems like the reasonable step. And because the 36 cent per gallon extension is only good for a year, even if it is approved, this battle will rage on.

By on November 24, 2010

The Las Cruces, New Mexico city council on Monday agreed once again to continue using a photo enforcement program that has proved to cause a significant increase in accidents. The jurisdiction in May reluctantly complied with a New Mexico Department of Transportation (NMDOT) order shutting down automated ticketing on state roads. Officials ignored the evidence at the time that accidents had increased, not decreased as promised, at photo enforced locations.

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