1983/06/01 by JOHN H. BOWMAN, J. H. Bowman, JOHN L. MIKESELL +1
Energy · Social Sciences · Economics, Econometrics and Finance · #Energy, Environment, and Transportation Policies #Transportation Planning and Optimization #Fiscal Policy and Economic Growth
paper · doi:10.1086/ntj41862502
Highway cost and gasoline price increases and gasoline consumption decreases have prompted significant changes in state gasoline taxes, including both uncommonly large and numerous rate increases and provision for automatic rate adjustment under variable-rate (indexed) taxes. Seven variable-rate states index by gasoline price changes—the result is a crude approximation to ad valorem taxation—but three use other indexing factors, including cost of services, which break new ground in tax practice. The different indexing approaches also produce different rate adjustment experiences and expectations. Analysis of rate change influences shows that so far, at least, automatic rate adjustment has not produced rate increases larger than those from statutory change.