Item B: Funding Strategies for Transportation System Operations, Maintenance, and Preservation

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Transportation System Funding Project Overview of Individual Funding Options Motor Fuel Tax Imposed on Distributors/Dealers Motor fuel tax on gasoline and diesel sold in Eugene and used in vehiclesutilizing public Brief roadways, imposed on distributors of gas and diesel fuel products, as well as service station Description of owners who receive fuel from out-of-area distributors. Funding Option The tax could be tied to a specific set or category of projects and be structured to sunset when the net revenue amount needed to fund those projects has been generated. Excise taxes on motor fuels are imposed in many states. In Oregon, both Multnomah and Precedence Washington counties, as well as the cities ofPendleton, The Dalles, Tillamook and Woodburn, (prior Council impose local gasoline or motor fuel taxes. history, other jurisdictions? In Eugene, a 2.7-cent per gallon tax to partially fund the storm water treatment program was practice, etc.) considered and rejected by the City Council in January 1995. A motor vehicle fuel tax is typically levied as a cents per gallon but could also be levied as a Calculation Base percent of sales. The calculation base is generally gallons of gas (and frequently diesel fuel) and Typical sold inside the city limits. Rates The state fuel tax is currently $0.24 cents per gallon. The federal fuel tax is $0.184 cents per gallon. Among the six Oregon cities and counties which currently impose a motor fuels tax, the tax rates range between one and three cents per gallon. A 1-cent tax on gasoline and diesel sold or distributed in Eugene as motor vehicle fuel would Estimated generate approximately$677,000 for FY02 and $685,000 for FY03, increasing slightly in Revenue Yield, successive years. Estimated revenues are based on Oregon Department of Transportation Administration/ projections for gallon sales statewide (net of refunds), with an estimated allocation for Lane Enforcement County and Eugene based on proportionate passenger car registrations and share of population, Costs respectively. Based on experiences in Multnomah and Washington counties, the cost of administration is estimated at 1% of the gross proceeds for a tax at the distributor level, as the State (ODOT) would be able to provide administration/collection services under contract to the City. In the event that the tax were to be imposed at the retail supplier level, these costs may be slightly higher. Some of the smaller cities administer their local motor fuel tax program in-house but do not separately track those costs. I9