Heavy Duty Trucking Logo
MenuMENU
SearchSEARCH

Reason Foundation Says Costs for Fuel Tax, Toll Collection are 'Myths'

The Reason Foundation, an American libertarian research organization, released a study saying it costs more to collect fuel taxes than is generally believed, and that thanks to new electronic tolling systems, collecting tolls costs less than is thought.

by Staff
November 27, 2012
Reason Foundation Says Costs for Fuel Tax, Toll Collection are 'Myths'

All-electronic tolling could be as cheap to operate as collecting fuel tax, says The Reason Foundation. Cash lanes, however, are more expensive to operate. (Photo by Jim Park)

2 min to read


The Reason Foundation, an American libertarian research organization, released a study saying it costs more to collect fuel taxes than is generally believed, and that thanks to new electronic tolling systems, collecting tolls costs less than is thought.



The principal author of the policy study, "Dispelling the Myths: Toll and Fuel Tax Collection Costs in the 21st Century," is Daryl S. Fleming, PhD, who has been helping implement electronic toll collection for nearly 25 years, both as a toll operator and consultant.

Fleming and colleagues critically analyzed three recent reports that assessed the costs of collecting highway revenues via tolling. All three were primarily backward-looking, capturing costs that are rapidly disappearing as toll facilities shift from cash to electronic tolling.

They also identified and studied in some detail three U.S. toll operators that have pioneered all-electronic (cashless) tolling. These agencies were able to achieve the low costs of collection that might be expected of much larger agencies that can spread fixed costs over a larger volume of transactions.

Extrapolating their findings to larger toll roads, the researchers estimate that all-electronic tolling can achieve a cost of toll collection as low as 5% of the revenue collected, using streamlined business models.

AET has not only reduced the direct operating costs of toll collection, the researchers say, but also has eliminated the secondary costs of manual toll collection such as traffic hazards at toll plazas, traffic congestion (and related emissions and fuel consumption), noise and consumptive land use.

Fleming also used information from a recent National Cooperative Highway Research Program report (and other sources) to re-estimate the cost of collecting highway revenue via per-gallon fuel taxes.

Thanks in part to new information on fuel-tax evasion and exemptions, as well as a detailed review of tax and other costs hidden within the fuel-delivery supply chain, they estimate that the true cost of fuel-tax collection is close to 5% of the revenue collected.

For a summary of the study: http://reason.org/news/show/myths-toll-and-gas-tax-collection

More Drivers

Truck driver in a blue-tinted cab beside a hand holding cash, with the headline “Competing for Drivers.”
Drivers•by Deborah Lockridge•October 29, 2026

Why Hiring Truck Drivers Is Getting Harder

Higher recruiting costs, a shrinking driver pool, and renewed pay competition are raising the stakes for fleets heading into 2027.

Read More →
Two red heavy-duty Class 8 trucks with Roehl branding
Drivers•by News/Media Release•October 27, 2026

Roehl Offers Truck Drivers $10,000 Retention Incentive

Payments begin after the first load and continue in mileage-based installments for eligible experienced drivers joining the fleet.

Read More →
PS Coach tablet interface showing a driver’s coaching inbox, safety event video and coaching advice for a harsh-braking event.
Fleet Management•by News/Media Release•October 21, 2026

Platform Science Adds Dispatch and Safety Tools

Four additions to PS Fleet help fleets monitor loads, manage driver coaching, share truck locations and adjust video system settings.

Read More →
Ad Loading...
Man with police badge on his arm by an open commercial truck door examining paperwork
Safety & Compliance•October 15, 2026

When Language Stops the Truck: The Return of ELP Out-of-Service Orders

English language proficiency rules for commercial drivers aren’t new, but renewed out-of-service enforcement has raised the stakes. Here’s what carriers need to know before a driver reaches a roadside inspection.

Read More →
Illustration of silver robot waving his hand and a Samsara AI prompt on screen to call drivers
Fleet Management•by Staff•October 13, 2026

Samsara Launches Custom AI Agent Builder

Agent Studio lets fleets create AI tools for hours-of-service monitoring, reporting and driver support, including agents that communicate by phone.

Read More →
Illustration of trucks parked in lot with Trucker Path app on phone screen superimposed on top
Drivers•by News/Media Release•October 6, 2026

Trucker Path Expands Reserved Parking Network

Trucker Path has added close to 6,000 more truck parking spaces to its Trucker Path Reserved Parking Network with the addition of Safe Truck Parking.

Read More →
Ad Loading...
photo of older driver standing with arms crossed with truck in the background, with a photo illustrating equal opportunity law inset upper left.
Drivers•by Staff•September 28, 2026

EEOC Sues Texas Trucking Company Over Driver Age Limits

The agency says Trancasa USA rejected applicants over 65 and applied tougher driving-record standards to those over 60.

Read More →
Red Nussbaum Class 8 tractor pulling white and red trailer with aero fairings and skirts
Drivers•by Staff•September 23, 2026

Nussbaum, Roehl Announce Second Driver Pay Increase This Year

This year has seen a swath of major truck driver pay increases as freight capacity has tightened.

Read More →
Photo of smiling truck driver Harold Perry with arms crossed in front of Southeastern Freight Lines truck
Drivers•September 17, 2026

From One Generation to the Next: How Mentorship Builds Safer Truck Drivers

After three decades in trucking, Harold Perry shares what he's learned about driver safety, mentorship, and helping the next generation build confidence behind the wheel.

Read More →
Ad Loading...
Illustration with driver behind the wheel, an alert sign, and a laptop
Drivers•by Lauren Fletcher•September 9, 2026

Truck Drivers Need More Than Another Alert

Fleets have more visibility into truck health, safety events, and driver activity than ever. The next challenge is turning all that information into useful guidance for the person who has to decide what to do next.

Read More →