Oregon Lawmakers Propose Mileage Tax On Fuel Efficient Vehicles

Hugh Pickens writes "Facing a $10 billion revenue shortfall for transportation financing, the Oregon Legislature is expected to consider a bill to require drivers with a vehicle getting at least 55 miles per gallon of gasoline to pay a per-mile tax after 2015 to offset the loss in tax revenue for fuel efficient cars at the gas pump, where the government has traditionally collected money to build and fix roads. Oregonians currently pay 30 cents per gallon, a tax that is automatically added at the pump, but as cars become more fuel efficient and alternative fuel sources are identified, state officials project gas tax revenue will decline. 'Everybody uses the road, and if some pay and some don't, then that's an unfair situation that's got to be resolved,' says Jim Whitty of the Department of Transportation. Opponents of the Oregon proposal say it will hurt a new industry. 'It will be one more obstacle that the industry and auto dealers will face in convincing consumers to buy these new cars,' says Paul Cosgrove, a lobbyist for the Alliance of Automobile Manufacturers. Other states, such as Nevada and Washington, are also looking at a per-mile charge and a Washington law that would charge electric car owners an annual fee goes into effect in February. Oregon did a pilot study of the mileage tax (PDF) where participants paid 1.56 cents per mile and got a credit for any gasoline tax they paid at the pump. Although initial media portrayals of the system were almost uniformly negative, 91% of test participants preferred the mileage tax to paying gas taxes."

Comments

I have a better idea

[kimvette]

I have a much better idea, one that lawmakers seem to have forgotten decades ago when the baby boomers came into power (thanks for piling debt on our backs, assholes!!). How about they cut spending? I'm sure there is a lot of wasted money in administrative overhead. How about trimming administrative costs, and make DOT maintenance management a volunteer job, or a maybe provide a salary that pays no more than the average worker who mans a shovel?

Re:Or they could just increase gas taxo

[Anonymous Coward]

So you're one of those lawn care businesses that hire illegals? Boohoo.

Re:Or they could just increase gas tax

[CAIMLAS]

No, it's not. The purposes of fuel taxes is for road repair. People who drive more on roads are, well, using roads more. With use comes wear. This is why diesel is so heavily taxed at the pump now (in part) - trucks do more wear/tear on roadways.

I fail to see how a mileage based tax - ie a use tax - would not be superior to a commodities tax (fuel), as it would more closely couple the tax and where it's going.

The alternative is to needlessly penalize people who drive lower MPG vehicles. You know, the people who can't afford or do not wish to afford a newer vehicle, because there's no point in getting rid of something that works, and their actual use of the vehicle is minimal enough to not justify buying a new one. Taxing the shit out of fuel will, basically, just push people to consume more cars when the old ones are still quite serviceable. (I say this as someone who only drives a diesel '86 Blazer on occasion - less than 5k a year.)

I might note that 'road tax' on gasoline isn't structured like diesel is, in case you didn't know. Vehicles used off-road are not taxed (due to the availability of 'farm diesel') road tax, which is a significant percentage of the cost of fuel. (This allows farmers and ranchers to not have to pay road taxes to fuel their tractors and farm trucks.) I see no reason why this structure should not also be used for gasoline (especially since I and people like me, as well as all the people with spiffy new TDI cars, still have to pay the added tax on diesel that heavy trucks do).

Of course, needlessly penalizing people who disagree with you is pretty much what progressive government does on an exclusive basis, so, rock on and tax 'consumption' through the roof so that you and your fellow upper middle class friends can keep doing your weekend trips to Tahoe or Aspen without the added costs of paying proportionate road tax.

(I'm going to guess you're also in favor of progressive taxation schemes - just a wiiiild guess.)