#Taxes

The Tampa, Florida city council tomorrow will consider adopting a contract granting American Traffic Solutions (ATS) the right to issue $158 tickets at intersections. At a meeting last month, half of the council’s members supported installation while the other half opposed — forcing the idea to be reconsidered at the upcoming meeting where a member absent from the last meeting is expected to cast the deciding vote. Opponents suggested the cameras had little to do with safety.

Grassroots anti-camera activists in Missouri yesterday charged that a photo enforcement firm was creating fake advocacy groups to promote the use of red light cameras and speed cameras. Wrong on Red and the Jefferson County Tea Party blasted American Traffic Solutions (ATS) for hiding its involvement in a slick advertising effort designed to persuade the legislature to allow photo ticketing to continue uninterrupted in the state.

Fourteen state senators want to do away with safety inspections for vehicles in the North Carolina. Led by state Senator Stan Bingham (R-Denton), the group introduced Senate Bill 123 last month in response to a 2008 legislative report suggesting the benefit of imposing the $165 million annual burden on motorists has yielded no measurable safety benefit.

Each year, the state’s 6.1 million vehicles must be taken to a private station for a $13.60 safety inspection. Vehicles registered in half of the state’s counties must also take a $30 emissions test. The state only keeps 85 cents out of the safety inspection fee, with the remainder kept by the inspector who also earns significant revenue by repairing whatever faults he discovers.

The city council in San Bernardino, California voted 5 to 0 last week to pull the plug on its red light camera program. The action follows the lead of a growing number of jurisdictions in the Golden State that have grown disillusioned with automated ticketing machines. Most recently, Rocklin‘s cameras were shut off last Tuesday. San Bernardino officials argued it would be worth paying the private contractor American Traffic Solutions (ATS) about $110,000 to get out of the contract before its 2014 expiration date.

Officials in Port Lavaca, Texas decided yesterday that they would ignore an initiative petition calling for the 12,000 residents to decide the fate of the red light cameras in a May election ( view petition). Signatures on the petition were certified as valid shortly after being submitted in January and a special city council meeting was scheduled to place the measure on the ballot, but the city decided against holding the vote. The group Port Lavaca Citizens Against Red Light Cameras believes the city is violating the law.

Wenatchee, Washington is suing to stop the public from circulating a petition that would thwart the use of red light cameras and speed cameras in the city of 28,000. In March 2009, Wenatchee officials signed a contract with American Traffic Solutions (ATS), and they claimed this agreement would be “impaired” if voters had a say in whether or not the program should continue, according to the complaint filed last Tuesday in a Chelan County court.

“The city seeks a declaration that the proposed Wenatchee Initiative No. 1 is invalid because it is beyond the scope of the initiative power and violates the Contract Clause of the United States Constitution and the Washington State Constitution,” Steve D. Smith, attorney for the city, wrote.

Ford reported a $6.6 billion profit for 2010, its highest in more than 10 years. This year, they could add $13 billion to the profit line, without selling an extra car. How will Ford pull off the miracle of the loaves and profits? With a simple bookkeeping entry.

After accepting more than three dozen campaign checks from registered photo enforcement lobbyists and other interested parties, Missouri’s attorney general on Thursday handed down a decision endorsing the use of automated ticketing machines despite significant legal controversy. Former Attorney General Jay Nixon stated when the city of Arnold started using red light cameras in 2005 that he believed tickets sent in the mail were not valid. The office of current Attorney General Chris Koster, however, issued a letter to state Senator Jim Lembke (R-St. Louis) defending the practice.

Analysts are reporting that GM could announce full-year 2010 profits of over $5b tomorrow, although Q4 profits may have dipped to $1.06b. That would make its full-year results the best since a $6b profit in 1999, but Q4 results could be the second-worst since emerging from bankruptcy. Why the slowdown? Analysts give Bloomberg a number of possible explanations, including

• GM’s spending on cars including the Chevrolet Volt plug-in hybrid and future products may lead to higher costs similar to those that restrained profits at Ford and Daimler AG.
• Automakers are paying more for materials such as steel and are struggling to pass the costs to consumers amid a “somewhat weak” economy
• Restructuring unprofitable European operations

Of all these dynamics, however, CEO Dan Akerson’s rush to revamp GM’s lineup and expand the applications of the Volt’s drivetrain could end up driving the most cost. Though GM is making a healthy profit again (and not paying taxes on it), an overly-ambitious speed-up in product cadence could combine with rising costs to slow The General back down (as they have already done to some extent at Ford). In any case, we will certainly have a better picture of GM’s financial performance tomorrow, when the firm’s results are announced.

Traffic camera vendor American Traffic Solutions showed no municipal love as it filed a breach of contract suit against Baytown, Texas on Monday. The St. Valentine’s Day complaint accused the city of failing to approve the mailing of an expected number of red light camera citations generated by the company.

Senator Debbie Stabenow has introduced S. 3715, known as the Charging America Forward Act, which would extend tax credits for plug-in vehicles until 2014 and “front load” the credits, to create a dealership-level discount, among other provisions. Though inspired by President Obama’s call to put a million plug-in vehicles on the road by 2015, Stabenow’s website plays up a single, all-important angle to the bill

Michigan is already a leader in emerging hi-tech battery and electric car production. Other countries are acting to develop their own advanced vehicle markets because they realize the tremendous economic potential this new technology represents. These initiatives will allow Michigan innovators to continue to out-compete the world and create new jobs here

Though the full text of the bill hasn’t hit Govtrack yet, the DetN reports that it’s chock full of plug-in subsidies, so it seems that Stabenow’s proposa is considerably more dramatic than the recent plug-in credit extension introduced by Rep Sander Levin. And that’s not necessarily a good thing…

My home state of Oregon has the unfortunate distinction of pioneering the practice of pay-per– mile taxation, having studied the GPS tracking approach to road taxes in a pilot program back in 2005-2007. Originally, the track-and-tax scheme was envisioned as a replacement for the gas tax, but now it’s being raised as a way of taxing motorists who go without gasoline altogether. The Eugene Register Guard reports

A bill before the Oregon Legislature aims to deal with the government’s potential beefs with a growing fleet of cars and trucks that never stop for fuel at a gas station: that they don’t ever pay the gas tax that helps cover the cost of state and local road construction and maintenance.

Under House Bill 2328, those drivers would pay a “vehicle road usage charge,” starting with model year 2014 electric vehicles and plug-in gas-electric hybrids.

Proponents say the bill will build on lessons learned from the pilot testing, and avoids the legitimate concerns about pay-per-mile which were first raised by the pilot project’s report. But does taxing EVs actually make sense, or is this just the politically-palatable first step towards an Orwellian nightmare of GPS vehicle tracking? Meanwhile, doesn’t the State of Oregon give up to $750 in tax credits for EV purchases? Mixed messages much?

The automated enforcement industry has suffered significant setbacks in the past several months. In November, voters in America’s fourth largest city, Houston, Texas, used the referendum process to outlaw automated ticketing machines. A number of California cities have been dropping red light camera programs after experiencing mediocre safety results. Now one of the key industry players, the Insurance Institute for Highway Safety (IIHS), is fighting back with a report released today claiming that with more red light cameras “a total of 815 deaths could have been avoided.” The IIHS report, however, did not actually consider a single red light camera accident.

In October, Jefferson County, Missouri signed a contract with American Traffic Solutions (ATS) allowing the Arizona-based company to issue red light camera tickets in return for a cut of the profits. Now just three months later, the county council wants out of the deal. All seven members were unanimous in the desire to change direction, even signing a letter to lawmakers urging them to adopt a statewide ban on automated ticketing.