For more information, please refer to: http://mobility.tamu.edu/mip/strategies.php.
Reduce need for excessive borrowing – Texas has increasingly turned to debt mechanisms such as
bonds as a way to finance transportation improvements. Texas could help slow a growing trend of using
the “credit card” to pay for roadway projects by increasing the state vehicle registration fee.
Fee increase will affect all drivers equally – A fee increase that is a set dollar amount will affect all
registered vehicle owners equally regardless of their fuel consumption.
What’s the Down-Side?
General opposition to fee increases – The Legislature and the public have recently been
opposed to any tax or fee increases. Recently, the fee schedule was reorganized to reduce the
number of categories and fees, making the new schedule easier to understand. The new fee
schedule actually provided the public with a decrease in the passenger vehicle registration fee.
“Free-Rider” problem – Gas and diesel taxes are user fees, meaning drivers pay a flat 20 cents for
every gallon they consume driving on the roadways. A registration fee increase would mean that
all vehicle owners, whether one drives 1 mile or 20,000 miles a year, would pay the same fee.
The number of unregistered vehicles may increase – An increase in price may cause the
number of unregistered vehicles to increase.
Estimated Funding Yield
Increase fee by $5: $467 million more for transportation from 2014 to 2017.
Increase fee by $25: $2.3 billion more for transportation from 2014 to 2017.
Implementation Issues
Very low cost to implement, no new technology or increased costs of
compliance.
Legislative action is required to implement this funding change.
Voters/users would need to be educated regarding the costs and benefits.
Other States
Current Vehicle Registration Fees (including other
miscellaneous fees) in peer states and their ranking:
Illinois: $99.00 Ranked 6
th
Michigan: $86.00 Ranked 9
th
California: $77.00 Ranked 13
th
Florida: $70.75 Ranked 16
th
Texas: $62.75 Ranked 18
th
Pennsylvania: $36.00 Ranked 33
rd
Ohio: $34.50 Ranked 35
th
New York: $29.50 Ranked 39
th
North Carolina: $28.00 Ranked 40
th
Georgia: $20.00 Ranked 47
th
Kansas
increased registration fees by $20 to
fund a comprehensive transportation
investment package in 2009. (HB 2650)
South Dakota in 2009 enacted legislation that
would raise registration fees by $18 over a
four-year period. (HB 1192)
Colorado
: Increased registration fees by $31
to total $41 (SB 108, 2009).