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Local Funding Options for Public Transportation
Contents
Introduction 3
Literature Review 3
General Transportation Funding (not specific to transit) 3
Transit Funding Studies 4
Evaluation Criteria 8
Potential Revenue 8
Predictability and Stability 8
Equity Analysis 8
Travel Impacts 9
Strategic Development Objectives 9
Public Acceptability10
Ease of Implementation 10
Analysis 11
Fare Increases11
Discounted Bulk Transit Passes13
Property Taxes 14
Regional Sales Taxes 15
Fuel Taxes 16
Vehicle Levy 17
Utility Levy 18
Employee Levy 19
Road Tolls 20
Vehicle-Km Tax 21
Parking Sales Taxes22
Parking Levy 23
Expanded Parking Pricing 24
Development Cost Charges or Transportation Impact Fees 25
Land Value Capture26
Station Rents 27
Station Air Rights 28
Advertising 29
Options Summary 30
Conclusions 33
Bibliography 35
Acknowledgments 40
2
Introduction
High quality public transit can provide various economic, social and environmental benefits, including
direct user benefits and various indirect and external benefits. Residents of communities with high quality
transit tend to own fewer motor vehicles, drive less, and spend less on transport than they would in more
automobile-oriented locations. Governments and businesses can save roadway and parking facility costs.
It can support economic development. Appropriate public transit investments can provide positive
economic returns: under favorable conditions transit investments can provide savings and benefits that
more than offset costs (Litman 2010). As a result, public transit service improvements are an important
component of many jurisdictions’ strategic transport plans (Buehler and Pucher 2010).
Although federal and state/provincial funds can often help finance a portion of tran
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