The State Highways of California

Our discussion here will deal only with the State Highway Maintenance or Motor Vehicle Fund.

Of this annual levy, the California Highway Commission has made use in three distinct classifications, as follows:

By considering in some detail the expenditures under the above segregations for the past six years we may arrive at a somewhat close approximation of what may be required in future years. First we will consider the motor vehicle equipment on which the tax must be levied to provide this amount. For the past six years, motor vehicle registration in California has totaled as follows (automobiles and motor trucks only):

Year 1914..

66 1915..

Total Vehicles

123,516

163,795

212,918

306,916

364,800

477,450

481,350

572,800-estimated total

While the rate of increase is by no means within any constant ratio, a curve based on the mean rate of increase should be accurate for the minimum number of vehicles during the coming ten years. Actual registration may be considerably in excess of the figures derived, but, except in the case of a national panic or other similar disturbance, it should not be less in any one year. Figure No. 4 following is a graphical exposition of the probable increase in total registration-automobiles and motor trucks, and we find that the total motor vehicle registration will pass the 1,000,000 mark about the year 1926.

Based on automobile and truck registration, the average fee paid per vehicle is approximately $10 per year, and using this figure it is possible to estimate the total fees by multiplying the total number of vehicles in any year by 10.

By deducting approximately eight per cent of total net receipts to provide for the expense of the Motor Vehicle Department, the net total to be disbursed (one-half to the counties and one-half to the State Highway Maintenance Fund) is obtained.

By taking the total maintenance expenditures by years it has been possible to predict with fair accuracy the probable maintenance requirements for future years, and Figure No. 5, following, includes a graphical exposition of this expenditure to 1932. If we add to the maintenance curve, estimated future reconstruction that will be required, the total money that will have to be provided can be found. By plotting the income curve in this same diagram we find that after 1926 the Motor Vehicle Fund will be inadequate to allow proper maintenance and reconstruction. It therefore seems that some change will be required in the motor vehicle tax to produce sufficient funds to meet the needs of maintaining and providing for the replacement of our system of State Highways.

We are first concerned with the equitable levying of this tax, and it is by means of a more just distribution of the burden of maintenance upon those whose use of the highway is greater, and particularly upon those who capitalize the highways to operate transportation companies at a profit, that this end can be fairly obtained.

It is certainly axiomatic that the greatest user of the highways profits most by a hard substantial pavement.

It is also demonstrable that the greatest wear and tear on paved highways occurs from the operation of fast moving, heavily loaded vehicles-coupled with the cases of illegal overloading of all types of vehicles, both motor and horse-drawn, previously discussed.

These facts established, in fairness to all of the people resident in the State (whose money in the first place pays for the construction of the highways), those agents which obtain the greater direct benefits and those which greatly increase maintenance costs should pay proportionally to use and damage.

The proportioning of this tax for adequate maintenance revenue and the modification of the motor vehicle law is a special study requiring more time than it is possible to devote here. The following tentative suggestions and recommendations are offered for consideration in connection. with possible revisions in the present law:

1. The appointment of a special committee by your association to correspond and confer with the National Committee engaged in the preparation of a uniform motor vehicle law. (The national work in conjunction with the Department of Roads is being undertaken by the American Association of State Highway Officials, the National Automobile Chamber of Commerce, the American Automobile Association and the Highways Industries Association.) Your committee to have power to hold joint meetings with State Highway officials, Chamber of Commerce representatives, automobile and motor truck agencies and manufacturers, county officials and motor vehicle owners, and to assist in securing such legislation as jointly may be deemed just and fair and in conformity with national legislation proposed or in prospect.

2. Your committee to consider revision of traffic laws with special reference to permissible speeds and permissible wheel loads, increase in motor vehicle taxes and definite provisions for enforcement of the law.

It is suggested that the following points be considered in conjunction with the motor vehicle tax.

1. Retention of present horse-power tax as a basis of registration.

2. Adoption of a gasoline tax on all gasoline for motor vehicle use to be paid to the Motor Vehicle Department by the oil companies engaged in such sale--one or two cents per gallon. (One cent is equivalent to one-tenth cent per mile on the average vehicle and to one-twentieth cent per ton mile in the operation of a five-ton truck.)

3. The regrading of the tax on commercial passenger vehicles based on a passenger mile charge. Suggested one-tenth cent per passenger mile capacity additional to the horse-power tax.

4. Regrading of tax on motor trucks.

(a) Tax on trucks to be graded, imposing heavier rates on trucks in proportion to increase in weight and carrying capacity.

(b)

On commercial freight-carrying lines-a tax of one-twentieth cent per ton mile additional to all other taxes.

Without considerably detailed study of the question it is not possible to give close approximations of the revenue that may be derived by the adoption of the recommendations noted. That it will be greatly augmented is self-evident, and to an extent sufficient to take care of maintenance and reconstruction needs for a considerable period of years is certain.

It has been shown that a greater maintenance and reconstruction fund will be needed; that equitable distribution of the costs of maintaining these arteries is a first principle of popular government; that action is required to prevent abuse of our highways, and the tentative suggestion is proposed whereby your association may do a great public benefit.

We strongly recommend this subject to your further and careful consideration.

The tabulation following compares California motor vehicle tax with similar enactments in Pennsylvania and Illinois, in which motor vehicle registration is approximately the same as in California, and also includes the recent motor tax law of Maryland.