Slashdot Mirror


Oregon Governor Proposes Vehicle Mileage Tax

tiedyejeremy writes "As covered by the Crosscut Blog, the Governor of Oregon, Ted Kulongoski, is proposing a change in the funding of the Oregonian transportation system that drops gasoline taxes and, by way of GPS tracking, taxes the number of miles driven, to the tune of 1.2 cents per mile. The reason for the proposed change is that lower fuel consumption via fuel efficiency will leave the system underfunded. The concerns involve government tracking of the movements of vehicles within the state, though this has been denied by ODOT official, James Whitty. I'm wondering how this affects people using the Interstate System and private roads, and if the outputs can or will be used by law enforcement to check alibis."

36 of 713 comments (clear)

  1. Great idea - it can replace the Gas Tax! by R2.0 · · Score: 5, Insightful

    Except for the part where they leave the gas tax in place.

    --
    "As God is my witness, I thought turkeys could fly." A. Carlson
    1. Re:Great idea - it can replace the Gas Tax! by Shambly · · Score: 5, Insightful

      Wouldn't increasing the gas tax thereby further increasing the value of low gas mileage vehicle be preferable? I mean doesn't this just help the pocket book of SUV driving suburbanites vs hybrid driving people?

    2. Re:Great idea - it can replace the Gas Tax! by TeraBill · · Score: 4, Insightful

      I agree. And it disables the incentive that the gas tax gives and it treats all mileage the same. In other words, if I'm driving a big heavy vehicle that wears the roads more than a smaller lighter vehicle, I pay the same. A tractor-trailer rig pays the same per mile as a Prius? I do understand it from the perspective of alternative fuel vehicles that are/will not pay the gas tax. We need to find alternative funding, but I don't like this solution.

    3. Re:Great idea - it can replace the Gas Tax! by MBGMorden · · Score: 3, Insightful

      Oh, and also it's only on NEW cars- old cars are grandfathered into the gas tax.

      I wonder then if there would be any penalty to hacking the device (for the technophiles) or just ripping the GPS out (for the less technically inclined) of a newer vehicle to avoid the privacy issues. I don't want to be tracked, and it seems like the more fuel efficient cars would fare better by the gas tax method anyways.

      Besides: why are we pushing legislation that puts gas guzzlers and fuel efficent hybrids back onto even footing when it comes to taxes? Shouldn't tax rates ENCOURAGE fuel efficient vehicles? If underfunding is the problem just raise the gas tax to make up for it.

      --
      "People who think they know everything are very annoying to those of us who do."-Mark Twain
    4. Re:Great idea - it can replace the Gas Tax! by edittard · · Score: 5, Insightful

      That plus it requires considerably more kit and labor to administer. Whether you agree with fuel tax or not, it has the advantage that it sort of collects itself.

      --
      At the bottom of the /. main page it says 'Yesterday's News'. Well they got that right.
    5. Re:Great idea - it can replace the Gas Tax! by Talderas · · Score: 4, Insightful

      Well, there's two problems with the gas tax.

      1. As a road usage tax it doesn't take into consideration gas for equipment like lawn mowers and chainsaws.
      2. It doesn't take into consideration driving done on private roads or roads not maintained by the government.

      #2 is pretty big in Oregon due to the amount of logging they do. There's a lot of people who spend most of their time driving on logging trails. #2 is also the reason why GPS tracking of miles driven is dumb. It could very well count miles driven on private roads.

      --
      "Lack of speed can be overcome. In the worst case by patience." --Znork
    6. Re:Great idea - it can replace the Gas Tax! by alvinrod · · Score: 4, Insightful

      "Very, very few people if any are able to completely avoid the public system. Groceries, utilities, emergency services, those things all require a maintained public street system for nearly all the work. So even those that theoretically don't drive on public roads are still benefiting from the ability to do so."

      Any goods delivered on a public road system are delivered by vehicles driving on that road which require fuel to run which is in turn taxed. I suppose people like me freeload a bit when we walk a few blocks to the grocery store on the nice sidewalks and roads instead of driving a car which pay for road upkeep through fuel consumption, but I still have to drive to work and other places so they invariably get me in the end. Of course there might be a few people who use the public roadways without driving a car at all. My personal belief is that these people should get a free pass as they're choosing a means of conveyance that will keep them healthier without adding to the amount of pollution in a given area. I think that the small amount of money lost from these people is made up in other areas.

      Gas tax works remarkably well for the most part and is probably one of most fair taxes that I could think of off of the top of my head. The only problem is that as we shift towards electric cars and hybrids we're still using the roads but not using the fuel. At that point it probably just makes more sense to have the state apply some other form of tax. A flat tax per vehicle per year works out well enough, but it does tend to punish those who don't use their vehicle as often. If they really wanted, they could just set up toll booths and collect funds that way as well.

      The proposed solution seems nice, but I feel as though it's overly complex and would require significant cost to implement at this point; never mind the potential for abuse.

    7. Re:Great idea - it can replace the Gas Tax! by conspirator57 · · Score: 3, Insightful

      You are very focused on the environmental impact side of the set of repercussions of automobiles and other power equipment. The main focus of the debate seems to be on the road maintenance costs. You are muddying the waters by responding only considering the topic that concerns you rather than the one the GP is concerned with. Here's a way to address both:

      Premises:
      1. We need infrastructure and transit to support our current population densities (and the variety of land uses that sustain them)

      2. We want to pay for the construction and maintenance of needed public infrastructure in a way that is fair. e.g. users who drive roads maintained with tax dollars pay for their portion of that use, but not for their use of private roads whose maintenance costs they are likely already paying.

      3. We (well, some of us anyways) want to discourage consumption of fuel by penalizing all usage of it, perhaps even disproportionately and we want to do this for all uses of the fuel because we fear the environmental impacts of over-consumption

      Analysis:

      Part of the tax needs to be proportional to the person's use of the infrastructure. Prii still wear the road and occasionally their drivers don't fess up to destroying signage or guide rails... SUVs wear the road more, but i'd think rather less than you'd like to penalize them for polluting. However, neither type of vehicle costs the state highway commission anything for miles driven on private roads. This last bit is the GP's beef that you don't care to acknowledge, no matter how legitimate it is with respect to highway maintenance costs. A smart GPS system could really shine here.

      Part of the tax (in the opinion of many) needs to encourage efficiency to reduce pollution. Thus it is punative against consumption. Gas taxes shine here.

      Results:

      Taxation that achieves both goals will synthesize both approaches and avoid corner cases where families scratching a living from the earth in BFE have to pay twice for road maintenance they aren't getting, while people tearing up the state roads and creating traffic jams on the Interstates in their Prii don't get off free for the congestion and resulting infrastructure building they contribute to.

      Taxation should explicitly acknowledge the balance of maintenance and penalization we as a society feel is appropriate. You will likely think that balance is not punative enough. Others will think it too punative. Compromise is inherent in politics. Get out there and convince others there is benefit to higher sin taxes. Use NY's cigarette tax as an example.

      Other than fairness and open government, another reason that explicitly apportioning the tax between the two objectives is necessary is that it is terribly demoralizing to be told that one is paying for infrastructure that one is hardly using at all. It feels like theft. And it is.

      Unrelated:

      As to your attempt at a point regarding electrical power equipment, you clearly have never used a chainsaw. There are electric chainsaws. They suck. Electric lawn mowers suck too. Perhaps you could make a contribution to the environment by designing electric power equipment that works as well as internal combustion driven equipment and do not weigh twice as much.

      --
      "If still these truths be held to be
      Self evident."
      -Edna St. Vincent Millay
    8. Re:Great idea - it can replace the Gas Tax! by dave562 · · Score: 5, Insightful

      If the real problem involves electric vehicles, then they could... wait for it... increase taxes on electricity!! There you go. Problem solved. No need for intrusive GPS tracking. If the problem involves the batteries in hybrid cars, then they can pay some mathmeticians to calculate the cost savings of the batteries, and then tax the production or sale of the cars to offset the revenue lost. Once again, no tracking necessary.

      Of course the REAL issue isn't completely related to the loss of revenues from the fuel tax. The real issue is that the government feels like they own us. They believe that they can go crazy with tracking us like merchandise. That is my big, fat, off-topic gripe for this thread. Our government has devolved from our fellow citizens serving their communities, to our fellow citizens trying to dictate our lives to us.

    9. Re:Great idea - it can replace the Gas Tax! by Original+Replica · · Score: 3, Insightful

      The justification for the gas tax is that your tax is proportional to your usage of the infrastructure. The point of the gas tax is to raise funds for the State government. Private roads only disrupt the justification of the gas tax, not it's function.

      However the creation of an extensive toll system to tax mileage will undoubtedly make for a nice fat contract to be awarded to a private contractor somewhere in Oregon, and there can be the additional claim of "jobs created". Simply raising the existing gas tax would be far too efficient.

      --
      We are all just people.
    10. Re:Great idea - it can replace the Gas Tax! by cayenne8 · · Score: 3, Insightful
      But, taxes should NOT be used to manipulate behavior....that's a bastardization of what a tax is for.

      It should only be collected at the minimum level for govt. to provide infrastructure and defense (mostly fed) and the like. I think a lot of the tax for behavior is what keeps us collecting and paying too many taxes today. It isn't supposed to be a means of behavior modification....that is just as bad as the Feds. using tax revenues as blackmail to make the states do certain things. It certainly isn't any better levelling them at individuals for behavior.

      And look..this is an example of it backfiring. Ok..so, the current gas taxes and pricing...cut people intake of gas...but, now, the govt. is so hooked on tax money..they have to move to figure a new way to keep the revenue coming in. In this case...the behavior was changed...but, the tax didn't disappear. This cycle happens over and over.

      I don't mind everyone paying a tax to keep the roads up and going...that is what it is for...how much you use it, does seem fari.

      However, I really don't want them to start mandating GPS's on cars like this proposal...too easy for the govt.to track yet another datum of the people.

      I'm for a fair tax to pay for infrastructure, but, not something that allows more govt. snooping...and I won't want them to tax to change behaviors...

      --
      Light travels faster than sound. This is why some people appear bright until you hear them speak.........
  2. Uh by Cr4wford · · Score: 4, Insightful

    I thought encouraging fuel efficiency is a good thing?

    --
    Freelance Web Designer - Portfolio
    1. Re:Uh by mrchaotica · · Score: 4, Insightful

      And it's blatantly obvious that tracking people is really the reason they want it too. If they just wanted to tax people per distance traveled they could simply check the odometer once a year -- they don't need GPS tracking for that!

      --

      "[Regarding the 'cloud,'] ownership was what made America different than Russia." -- Woz

  3. WTF do they need GPS for? by Shakrai · · Score: 5, Insightful

    Why just use the fancy new technology called an odometer? Check it every time you renew your registration and collect the fees at that time.

    --
    I want peace on earth and goodwill toward man.
    We are the United States Government! We don't do that sort of thing.
    1. Re:WTF do they need GPS for? by tripdizzle · · Score: 3, Insightful

      Because you can turn those back, at least on older cars, on the newer ones that might get reported to the black box, but I know people who can disconnect those too. Looks like its an arms race between motorists and state gov'ts.

      --
      "A claim for equality of material position can be met only by a government with totalitarian powers." Hayek
    2. Re:WTF do they need GPS for? by tilandal · · Score: 5, Insightful

      Or they could just... increase the gas tax. I know. Its a maverick idea.

    3. Re:WTF do they need GPS for? by Flying+Scotsman · · Score: 4, Insightful

      Why just use the fancy new technology called an odometer? Check it every time you renew your registration and collect the fees at that time.

      Odometers don't track in-state mileage versus out-of-state mileage. The article isn't clear on if that matters to the plan here (it might only tax in-state driving, for example), but there's this little snippet about the test run:

      A GPS-based system kept track of the in-state mileage driven by the volunteers. When they bought fuel, a device in their vehicles was read, and they paid 1.2 cents a mile and got a refund of the state gas tax of 24 cents a gallon.

    4. Re:WTF do they need GPS for? by JoeMerchant · · Score: 4, Insightful

      Or they could just... increase the gas tax. I know. Its a maverick idea.

      With the added benefit of taxing gas-hogs proportionally higher - works for me.

    5. Re:WTF do they need GPS for? by JoeMerchant · · Score: 3, Insightful

      A GPS-based system kept track of the in-state mileage driven by the volunteers. When they bought fuel, a device in their vehicles was read, and they paid 1.2 cents a mile and got a refund of the state gas tax of 24 cents a gallon.

      So, this only benefits people who get less than 20mpg - since my car gets about 24mpg on average, I think I'd rather save the money _and_ keep my privacy intact.

    6. Re:WTF do they need GPS for? by Obfuscant · · Score: 3, Insightful
      As others have stated - so they can charge you different taxes based on where you are/went. In the case of the USA, that might be state-wise. In the case of NL (where they intend to launch this starting 2012), it's so they can charge you more if you drive during rush hour, more if you take the busy roads, more if you're down town (when you could have parked at the edge and taken a shuttle bus instead), etc.

      I know someone at the Uni who was involved in the initial testing for this system. What you say is the main reason why GPS instead of odometer. If you drive in downtown Portland during peak hours, you will pay through the nose. If you drive all your miles in Valley Junction, you will pay a lot less. Also, off-road use is supposed to be tax-free, and currently you have to file for a rebate of those taxes to get your money back at the end of the year.

      My friend could simply not understand that paying rates based on time/location means logging driving times and locations as well as miles, and that this data could easily be used to track people and be used against them for all sorts of things. Insurance companies would love this, as well as cops and all sorts of other investigators. "Well, well, Mrs. Lincoln, we see the GPS in your car shows you meeting with a Mr. Booth ..."

      ODOT, of course, is denying that any logging will take place. Flat out. Won't happen. They know what chance this has of working of they admit the obvious, and too many people don't understand technology well enough to know what has to happen for the magic to take place. Even my friend, an otherwise very smart engineer and all around nice woman, doesn't get it. Why would Joe Smith?

    7. Re:WTF do they need GPS for? by Pyrion · · Score: 3, Insightful

      They likely want something in the guise of "repealing the gas tax" to make themselves look great to the math-challenged masses.

      --
      "There is much pleasure to be gained from useless knowledge." - Bertrand Russell.
    8. Re:WTF do they need GPS for? by JoeMerchant · · Score: 5, Insightful

      Some South American countries use the tire tax, so everyone drives around on "superlast, hard as rocks" tires to beat the tax rate - can't be good for safety.

      I think that taxing each gallon of fuel is the right way to go, if 0.24 isn't enough, make it 0.48 - we just demonstrated that the world doesn't end when gas passes $3 a gallon.

      Taxing fuel:

      • Collects the tax in small, easy to handle increments
      • Rewards fuel efficient vehicles (which tend to be light and easy on the pavement)
      • Still taxes based on roadway usage
      • Doesn't require any potential invasions of privacy
      • Isn't open to potential tampering (beyond bootleg fuel)

      I think the governor is just talking to get himself heard, drivers of big gas hog vehicles (likely the majority of his constituency) will love the idea, but lawmakers would have to have several screws loose to think this is a good or practical idea.

  4. Why not raise the tax on gas? by Mark+Programmer · · Score: 3, Insightful

    It seems to me that if you tax a staple good, and people will be consuming less of that staple good due to an increase in efficiency... meaning you'll bring in less money from those taxes...

    Then you raise the tax. What's the downside? It's not like people are going to consume less gas if the tax goes up.

    Arguably, cranking the tax could also lead to people holding onto junker cars for sentimental reasons replacing them or repairing their engines. So really, it's win-win.

    --

    Take care,
    Mark

    There is a solution...

    1. Re:Why not raise the tax on gas? by Myopic · · Score: 5, Insightful

      Yes. This solution is so glaringly obvious that there must be some sinister reason they are ignoring it. I mean, seriously? You're going to go with a fancypants expensive satellite-based high-tech solution requiring lots of new legislation, training, infrastructure, and other costs, not to mention the overwhelming privacy violation -- instead of just raising the tax a little bit? What, seriously? I call shenanigans.

  5. I can solve this problem! by uncreativeslashnick · · Score: 5, Insightful

    Here's a crazy idea. Instead of raising taxes in a tough economy, how about you do what everyone else is doing and tighten belt and reduce spending? Nah, you're right, that will never work...

    1. Re:I can solve this problem! by Archangel+Michael · · Score: 4, Insightful

      Because I love my children more than the "poor, uninsured, orphan, elementary school children" and don't want to burden THEM with leveraged debt. Oh, and I get the side benefit of, gasp, not leveraging those others with the same debt!

      Wow, how novel is THAT???

      --
      Agent K: A *person* is smart. People are dumb, stupid, panicky animals, and you know it.
  6. Priorities by raftpeople · · Score: 4, Insightful

    How about letting us pump our own gas first, then work on this high-tech stuff.

  7. Except weight and mileage DOES count... by nweaver · · Score: 5, Insightful

    The problem is, fuel efficient cars weigh less, and therefore do less damage to the road.

    Thus a gasoline tax is actually better at putting many of the costs on the actual source: heavier, less efficient vehicles. As a bonus, fuel taxes encourage smaller, lighter, more efficient cars which are better for society in the long run.

    --
    Test your net with Netalyzr
    1. Re:Except weight and mileage DOES count... by thrillseeker · · Score: 3, Insightful

      Yes, all targeted tax collection is simply forced "wealth transfer" hidden behind yet another name.

  8. misplaced priorities? by moderatorrater · · Score: 4, Insightful
    FTFS:

    I'm wondering how this affects people using the Interstate System and private roads, and if the outputs can or will be used by law enforcement to check alibis.

    Let me get this straight. In a move straight from Orwell, they want to track every vehicle in the state for the purposes of getting more taxes out of people, and you're concerned about whether it can be used for alibis and whether there's a hole in the technical details?

    I've got a few problems with this. My first reaction to the statement about more efficient cars is that they shouldn't be punishing people for buying those cars. More efficient cars are also the ones which do the least damage to the environment and the surfaces they drive on since they tend to weigh much less than the alternatives. Punishing those people for being efficient doesn't make sense. A better measure would be to raise the taxes on gasoline. One year ago the price was over double what it is now. Even adding $.50 or $1 to the tax wouldn't bring the prices to what they were.

    My next objection would be the costs of the system. The infrastructure would cost a lot of money, it would raise the cost of cars sold in Oregon and also cost the state money in terms of fighting the inevitable legal battles which may render the system entirely worthless. It seems like a gross misuse of funds.

    Finally, the philosophical objections. Inevitably, many people will have access to this information, and the abuses are many. They range from the government using it to track people to as simple as a stalker knowing where his victim is at all times. At the very least it would raise concerns with police abuses.

    Overall, there is no way that this proposal is a good idea.

  9. Astoundingly stupid by Just+Some+Guy · · Score: 5, Insightful

    The amount of damage done to a road by a passing vehicle is a geometric? exponential? function of the weight of the vehicle. For instance, say a road will fail if a 100,000 pound vehicle drives over it. In that case, a 120,000 pound truck would do much more damage than two 60,000 trucks. At the low end, you reach a point where no damage is done at all. It's not possible to ruin a modern highway with bicycles, for example.

    So you're justified in taxing vehicles proportionally to their weight, since more weight means more damage, which means more expensive repairs. Conveniently enough, gas mileage is a useful proxy for vehicle weight: the heavier they are, the more gas tax they pay per mile.

    I have no love for Priuses, but it's insane to tax them the same as someone in a semi truck. There are two possible explanations that don't involve Gov. Kulongoski being a stark moron:

    • This is a concession to the trucking industry or people who have to pay them, such as lumber companies who want to reduce transportation costs, or
    • Big Brother can't wait to get here.

    Any Oregonians have insight on the matter?

    --
    Dewey, what part of this looks like authorities should be involved?
  10. Trucking companies... by Notquitecajun · · Score: 3, Insightful

    If something like this were implemented, trucking companies who happen to be based in Oregon would suddenly find themselves elsewhere, with their trucks registered as being owned in other states. The state would lose a chunk of commercial revenue off of this, AND have to deal with higher prices to ship stuff into the state.

  11. Re:Taxation without representation by bzipitidoo · · Score: 4, Insightful

    Sounds like the opposite of taxation without representation. I don't live in Oregon, but with this proposal I can drive through the place and pay less tax than the locals. Woohoo!

    Oregon is weird. They've outlawed self service at gas stations. Since I don't care to pay to have some high school klutz spill gas on the ground when filling up my tank, I make sure to gas up across the border whenever I do go that way.

    Just watch out for the sales tax on the motel room. The whole nation has got on the bandwagon of screwing the traveler with extra taxes on motels, rental cars, and all the stuff only visitors need. Now that's taxation without representation.

    --
    Intellectual Property is a monopolistic, selfish, and defective concept. It is "tyranny over the mind of man"
  12. Exactly by Craig+Davison · · Score: 4, Insightful

    Exactly. It's essentially a subsidy for inefficient vehicles.

  13. Obligatory: The Beatles and Orwell by starglider29a · · Score: 3, Insightful
    "If you drive a car, I'll tax the street."
    --
    Taxman
    The Beatles
    Revolver

    Seriously, people. Have we failed somewhere in transmitting the message that the Beatles song is *satire* and Orwell's DYS-topia is a *warning*!? It's not a cook book for Governments to follow to do that voodoo that they do!

    Oh, that's a great idea. So THAT's how we can do that and get away with it! Now, how do we tax their feet?

  14. As an Oregonian, higher gas tax, not a milage tax! by benwaggoner · · Score: 4, Insightful

    As an Oregon resident, I'll state my preference for a higher gas tax for just these reasons.

    A gas tax simply aligns with the public externalities of motor vehicles a lot better than just milage, since bigger cars cause more wear. There's no incentive for buying less damaging vehicles this way. Also, gas taxes are easy to collect, while this is more complex. Net revenue will be reduced by the cost of monitoring, plus there's the initial capital cost of getting the whole thing set up.

    And while all taxes cause some distortion in the market, it's best to pick ones where the distortion is the least painful or disruptive, or otherwise aligned with society goals. Reducing petroleum imports and carbon emissions are both clear public goals. If consumption is going down, the tax is doing what it should, and so the best thing to do is to raise it to maintain the incentive to get smaller, more efficient vehicles that we saw last summer.

    Since governments at all levels need funding, higher gas taxes seem like one of the best options. And a high tax sets a minimum on gas prices, and so a floor for how inefficient a vehicle people are willing to take. A $0.50 gallon tax, split evenly between states and the fed, would pay for a whole lot of economic recovery, give a stable floor to the value of alternative energy, and still be way cheaper than it was a few months ago. Right now, we're seeing state governments cutting services and payroll at the very time we need an expansionist policy nationwide to avoid deflation. The net effect is the federal government will need to borrow and spent even more money to balance out the state cuts before we can even start climbing out of the hole (if state payrolls drop by 500K, that means the fed employment target from the stimulus plan needs to be 3.5M, not 3.0M, to have the same effect).

    I'd much rather see our governor recommend raising the gas tax by $0.25, drop this milage/GPS nonsense, and restore funding to education, get the new I-5 bridge started, etcetera.