Highway Cost Allocation and Determination of Heavy Freight Truck Permit Fees

Minnesota Department of Transportation (MnDOT) and other state DOTs periodically carry out studies to assess how highway construction and maintenance (HCM) expenditures ought to be attributed to various vehicle classes. In parallel, each vehicle-class' contribution to revenues from fuel and excise taxes and permit fees are calculated. Although, the latter are determined by the state legislature, the cost-to-revenue ratio helps inform MnDOT if changes to policy could be justified. A variety of methods have been developed to apportion HCM costs to different user classes. The purpose of this study was to evaluate pros and cons of different HCA methods and to identify/develop a methodology best suited for conditions in Minnesota. Researchers also carried out a highway cost allocation study (HCAS) using the latest data from Minnesota. In addition, the methodology developed in this project can be used to evaluate damage costs to the road system from permitting more than 80,000-lb gross vehicle weight trucks on Minnesota roads and the users' willingness to pay for such permits. This report represents the results of research conducted by the authors and does not necessarily represent the views or policies of the Minnesota Department of Transportation or the University of Minnesota. This report does not contain a standard or specified technique. The authors, the Minnesota Department of Transportation, and the University of Minnesota do not endorse products or manufacturers. Any trade or manufacturers' names that may appear herein do so solely because they are considered essential to this report. Acknowledgments This project was made possible through the generous contributions of time and expertise from a number of MnDOT staff. The authors are grateful to all those who helped in the execution of the project, especially the following individuals. The authors are also grateful to the members of the Technical Advisory Panel (TAP) for their helpful comments throughout the execution of this project. Finally, the researchers are grateful to five University of Minnesota graduate students and 12 MnDOT staff for participating in an experimental study reported in Chapter 5 and for devoting their time to this endeavor. Executive Summary Minnesota Department of Transportation (MnDOT) and other state DOTs periodically carry out studies to assess how highway construction and maintenance (HCM) expenditures ought to be attributed to various vehicle classes. In parallel, each vehicle-class' contribution to revenues from fuel and excise taxes and permit fees are calculated. Although, the latter are determined by the state legislature, …