Raod Tax Misconceptions
Even most cyclists donít understand taxes and insurance. It is not because you also own a car that you pay road taxes it is because you own or rent property and pay income taxes. Here is why:
Most roads are constructed by private developers who pass the cost onto the business and individuals that buy the property. You pay for this in the purchase price of your home, your rent, or consumer product retail prices.
Many other roads actually predate the automobile and automobile taxes. Most downtown city streets and county road right of way was established by 1910. Long before the widespread use of the automobile. Horses, oxen, street cars and bicyclists all outnumbered cars.
General fund tax money is used for street maintenance and upgrades, while vehicular and gas taxes are used only for roads. You pay for this with your property and income taxes. If you donít use a car you are subsidizing those that do.
Cyclist liability is covered under their homeownerís and renterís personal liability insurance, but they are so unlikely to need this coverage that most cyclists donít even know they have it. About 10% of drivers donít have insurance and they know they are required by law to have insurance.
Please help educate others on how roads are funded.