#Taxes

Speed camera operators in the UK are looking to hike costs for “educational courses” and redeploy cameras to more lucrative locations to address a growing budget deficit. The options for the Thames Valley Safer Roads Partnership were discussed in an August 11 strategy meeting, the minutes for which were obtained from a freedom of information request. The partnership consists of local police agencies, local council members, the courts and the staff who run the speed cameras themselves.

Washington state’s attorney general confirmed Monday that the legislature may no longer pass authority to raise transportation tolls and fees to an unelected commission. In November, 64 percent of voters approved Initiative 1053 which stated that taxes must be approved by the vote of a majority in the state House and Senate.

The last time we discussed the idea of “crash taxes,” it kicked off quite the debate. After all, it’s a question that cuts to the core of political philosophy: to what extent should individuals take responsibility for using public resources? As motorists, would we rather know that we’ll be taken care of in case of a crash, or would we rather have financial incentives to take care to not crash? Well, New York City has decided that, philosophy aside, it simply doesn’t have the money to send emergency responders to car crashes without charging some kind of fee. The WSJ reports

The FDNY plans to start sending out bills July 1. A vehicle fire or any other incident with injuries will cost $490. A vehicle fire without injuries will cost $415. And incidents without fire or injuries will cost $365. These charges apply to every vehicle involved in the incident.

Except, of course, when they don’t…

Red light cameras are nowhere near as popular as they once were with Golden State municipalities. Loma Linda and Whittier became the most recent examples of California cities unplugging their automated ticketing machines after noting that the devices both failed to reduce accidents and generate the promised amounts of revenue.

It seems that yesterday’s optimism about a possible end to the ethanol “Blender’s Credit” may have been somewhat premature, as Senate Budget Committee chair Max Baucus has now proposed extending the 45 cents per gallon tax credit at the lower rate of 36 cents per gallon. The ethanol industry has expressed disappointment, but says it will accept the proposal. Which, given the fact that the Blender’s Credit is opposed by groups as diverse as Friends Of The Earth and FreedomWorks, seems like the reasonable step. And because the 36 cent per gallon extension is only good for a year, even if it is approved, this battle will rage on.

The Las Cruces, New Mexico city council on Monday agreed once again to continue using a photo enforcement program that has proved to cause a significant increase in accidents. The jurisdiction in May reluctantly complied with a New Mexico Department of Transportation (NMDOT) order shutting down automated ticketing on state roads. Officials ignored the evidence at the time that accidents had increased, not decreased as promised, at photo enforced locations.

Millions of dollars paid by motorists in red light camera and speed camera fines end up in the pockets of a handful of individuals. In the United States, American Traffic Solutions (ATS) is responsible for about 41 percent of the nation’s photo enforcement business, but as a private company its dealings are well concealed from public scrutiny. Based on a review of documents marked “confidential — attorneys’ eyes only,” the ATS leadership team has reaped significant personal profit in a short amount of time.

Automated cameras will begin issuing tickets to the owners of vehicles that momentarily stray into bus lanes in New York City, New York beginning Monday. The cash-strapped metropolis imported the idea from London where a similar system generated 293,000 citations and more than £35 million (US $56 million) in 2008. New York’s bus lane tickets will run between $115 and $150 each.

The project marks one of the first uses of automated enforcement in the United States that drops the pretense of being a safety measure. The stated purpose of the new cameras is to give buses a travel priority over automobile traffic.

With the federal deficit balooning out of control, President Obama’s National Commission on Fiscal Responsibility and Reform has publicized its preliminary proposals, and goodness are there a lot of them. But only one of the commission’s proposals gets to the heart of this nation’s automotive future: a proposal to increase America’s gas tax. Federal fuel taxes currently stand at 18.4 cents a gallon for gasoline and 24.4 cents for diesel fuel, but the commission has proposed a 15 cent per gallon increase, to take effect starting in 2013.

A federal class action lawsuit seeks to take advantage of last month’s California Supreme Court’s red light camera decision. The high court let stand a lower court ruling that invalidated citations on the ground that the city of Santa Ana’s failed to provide the legally required warning periods before activating the automated ticketing machines ( view ruling). Motorist Robert Plumleigh was forced to pay $480 on March 17, 2008 after a camera accused him of turning right at a red light at one of the sixteen intersections where the city failed to provide the required thirty-day warning period. He wants Santa Ana to refund all illegally issued tickets. US District Court Judge Cormac J. Carney on Wednesday gave Plumleigh’s lawyers an extra thirty days to file for class certification.

The city of Houston, Texas sought to keep secret all detailed information about the performance of its red light camera program on the eve of an election that will decide their fate. Yesterday, Paul Kubosh, co-founder of Citizens Against Red Light Cameras, filed suit in Harris County District Court seeking a court order compelling the release of accident data at intersections equipped with automated ticketing machines. Voters head to the polls today to decide whether or not the city will be allowed to continue using the devices.

Ever since it became clear that the government would rescue General Motors and Chrysler, the Treasury Department has made it clear that it would stay out of “day to day” decision making at the rescued automakers. Allowing the rescued firms to operate independently was a political calculation based on the desire to keep politics from affecting sales at the two rescued automakers, but according to a Reuters special report, Treasury has not been able to keep its hands completely out of important decisions concerning the future of the two firms. Particularly in terms of setting up GM’s Initial Public Offering, Reuters found that the Treasury made important decisions affecting

its speed and size, the fees paid to the bankers and the potential involvement of offshore investors

Though this has kept the IPO out of election season and all of its potential for political problems, there is some downside to the Treasury’s involvement, particularly because it will not be exiting its equity position in GM until about 18 months after the IPO. As a result, analysts predict problems securing investors in a firm that may still be subject to ongoing government control. Morningstar’s David Whiston tells Reuters

I’m sure that there will be some institutional investors, and even some individual investors, that it scares away

Facing massive budget shortfalls, many of the nation’s governors are turning to toll roads as a solution to their short-term spending needs. The National Governors Association last month dispatched a letter to US Senate committee leaders in the hopes of dissuading them from limiting the abilities of states to impose tolls on existing interstate freeways.

Photo enforcement cameras are temporarily disabled in Albuquerque, New Mexico after a study by the University of New Mexico failed to offer a complete justification for the program. Mayor Richard J. Berry announced that he would eliminate six of the twenty red light camera intersections where accidents increased the most. He also will stop issuing speed camera citations at intersections — although he plans to keep three vans to set up mobile photo radar traps. While the contract with Redflex Traffic Systems is expired, Berry is seeking a better deal from other photo ticketing vendors.