How Carsharing affects Municipal Budgets
The limited research on carsharing and municipal budgets largely focuses on the tax burden of services in a community. High sales taxes on carshare program might, in the short term, bolster city budgets, but may in the longer run limit the financial sustainability of carshare programs. In a cost-benefits analysis of carshare sales taxes, one study found that sales tax revenue for carshare reservations typically exceeded the nominal sales tax rate [1]. An update to this study found that in keeping with this trend, as retail taxes increased, base price rates for carsharing dropped between 2021-2016, and, as a result, limited the long term sustainability and growth of the carshare sector [2]. Research is significantly lacking in understanding the benefits or costs to city governments and municipal budgets from such services, and how to balance municipal interests with long term sustainability and profitability of services.
References
A. Bieszczat and J. Schwieterman, “Carsharing: Review of Its Public Benefits and Level of Taxation,” Transp. Res. Rec. J. Transp. Res. Board, vol. 2319, no. 1, pp. 105–112, Jan. 2012, doi: 10.3141/2319-12.
J. P. Schwieterman and A. Bieszczat, “The cost to carshare: A review of the changing prices and taxation levels for carsharing in the United States 2011–2016,” Transp. Policy, vol. 57, pp. 1–9, Jul. 2017, doi: 10.1016/j.tranpol.2017.03.017.
Related Literature Reviews
See Literature Reviews on Carsharing
See Literature Reviews on Municipal Budgets
Note: Mobility COE research partners conducted this literature review in Spring of 2024 based on research available at the time. Unless otherwise noted, this content has not been updated to reflect newer research.
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