1. Revenue Enhancement 2013

2. Wayne Hammond of the AGC, and Stuart Davis of IAHD formed a Coalition. The purpose of the Idaho Transportation Coalition is to raise awareness of the need for long term sustainable funding for Idahos roads and bridges.

3. The Coalitions partners are a broad base of Idaho transportation stake holders. Commercial Trucking Agriculture Freight Governmental Entities Natural Resources Citizens Committees

4. Genesis Revenue Enhancement Legislation introduced 2013 Session HB 337 - Imposed an additional 1% sales tax for 5 Years - Generated $202.7 million in additional funding.. HB 338 – Variety of fuel tax/transfer fee/registration.. - Generated $236.5 million at end of five year phase in HB339 – Sales Tax on tires/auto related/lease and rental increase - Generated $25.4 million at end of five year phase in HB340 – Increases fuel and diesel fuel taxes/increase transfer fee on delivery or storage/enforcement of dyed fuel program - Generated $149.7 million at end of five year phase in HB341 – Registration fee increase on cars and trucks/hybrid fee/ increase overweight fees - Generated $61.4 million at end of five year phase in

5. Coalition Held First Meeting on July 23 rd Over 50 people attended The Purpose and Scope of the Coalition was discussed, and stakeholder input was incorporated into setting the agenda for the process of raising the awareness of Revenue Enhancement.

6. Todays Presentation Revenue shown is for Idahos entire transportation system Totals are approximated

7. Revenue Needs The Task Force on Modernizing Transportation Funding recommended that Idaho should increase transportation funding by $543 million annually for all system needs, or by at least $262 million annually to operate, preserve, and restore the existing system. The system is suffering from: Aging infrastructure: Much of Idahos infrastructure was built in the 1950s and 1960s. Growing demand: Idaho has been one of the fastest growing states in the nation for over a decade. Flat revenue: Idahos fuel tax, currently 25¢ per gallon, has not been raised since 1996. Inflation: In inflation-adjusted value, the 25¢ fuel tax implemented in 1996 is worth only 17¢ today.

8. Real World Examples In 1996, Burley Highway District paved 10 miles of new road every year. In 2013, the Highway Districts paved just 1 mile of road.

9. Currently Deficient Local Bridges Currently Deficient State Bridges 679 Deficient State and Local Bridges

10. 395 State and Local Bridges Built Prior to World War II Local Bridges State Bridges

11. Fuel Tax Progression 1960 1970 1980 1990 20002010 5¢ 10¢ 15¢ 20¢ 25¢ + 1¢ + 1.5¢ + 1¢ + 2¢ + 1¢ + 2¢ + 3.5¢ + 3¢ + 4¢ Fuel Tax Revenue Increases 1960 - 2013

12. Sources of State Transportation Revenue FY13 Actual Revenue Before Distribution Dollars in millions and rounded Passenger Vehicle Registration $50.5 Commercial Vehicle Registration* $50.2 *Includes Permits **Includes Special Fuels Misc. Fees $8.3 Total Revenue to HDA $346.7 Gasoline Tax $172.1 Diesel Tax** $65.6 F uel Taxes $237.7

13. Revenue Potential: Fuel Taxes 1¢ of additional fuel tax realizes approximately $9,000,000.00 Idaho Currently assesses ¢25.0 per gallon The Federal Government assesses ¢18.4 Total State/Federal Tax 43.4% National Average 49.5%

14. Eliminate the sales tax exemption on gasoline and diesel 6% increase = $175 million Revenue Potential: Fuel Taxes

15. Revenue Potential: Sales Tax Increase the state sales and use tax from 6% to 7% Place the additional 1% sales tax directly into the Highway Distribution Account Estimated Annual Revenue Increase: $202.7 million*

16. Bulk Petroleum Transfer Fee 1¢ Transfer Fee for the Petroleum Clean Water Trust Fund (PCWTF). Applies to all bulk petroleum products brought into Idaho. Estimated Annual Revenue Increase: $10.5 million

17. Sales Tax on Tires Transfer the 6% sales tax on tires to the Highway Distribution Account Estimated Annual Revenue Increase:$23.4 million Based on SIC Code 553

18. Passenger Vehicle Registration Fees Approximate revenue potential of passenger vehicle registration fees: 10% increase =$5 million 50% increase =$25 million 100% increase =$50 million

19. Value-Based Registration Fees Charge a registration fee, based on vehicle MSRP, age or other factor

20. Commercial Vehicle Registration Fees Approximate revenue potential of Commercial vehicle registration fees: 1% increase =$500,000 5% increase =$2.5 million 10% increase =$5 million

21. Commercial Vehicle Mileage Surcharge Charge a cents per mile fee, based on weight, for trucks weighing 26,001 lbs. or more Estimated Annual Revenue Increase: $50 to $60 million Note: Elimination of Idahos truck weight/distance tax in 2001 caused a $9 to $10 million annual revenue shortfall.

22. Dyed Fuel Enforcement Enforce the current state law that prohibits dyed fuel from being used in vehicles that are registered to operate on Idaho Highways Estimated Annual Revenue Increase: $2.7 million

23. Electric / Hybrid Vehicle Fee Implement a $140 annual fee for electric vehicles Implement a $75 annual fee for hybrid vehicles Estimated Annual Revenue Increase: $720,000

24. Rental Car Fee Implement a 6% rental car fee Estimated Annual Revenue Increase: $2 million

25. Safer Highways and Bridges Reduced Unemployment Improve Idahos Economy Investments Today, Save Money Tomorrow What is the return on investment?

26. Formed sub groups At the first stakeholders meeting, ITC formed specialized groups to discuss pros and cons of all issues related to revenue enhancement. Fuels Sales Tax Trucks Vehicles Public Awareness (including Economic Impact Study)

27. Economic Impact Study ITC is collaborating with a highly respected national consulting firm specializing in utilizing TREDIS software to produce a study that will demonstrate the positive effects of passage of revenue enhancement, including: Economic Impacts Traffic Flows Growth Patterns & Pace Job Creation in all Sectors Study will use Idaho data from ITD and Compass.

28. Formed sub groups The next steps for ITC will be to Finish subcommittee meetings Compete economic study Meet with Legislators, Governors office, and other stakeholders to develop information to be utilized by legislature for revenue enhancement efforts

29. The Purpose of the Idaho Transportation Coalition is to raise awareness of the need for long term sustainable funding for Idahos roads and bridges. The coalition also provides an opportunity for all stakeholders to add input and share ideas.