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Oregon Testing Pay-Per-Mile Driving Fee To Replace Gas Tax
schwit1 tips news that Oregon will become the first U.S. state to test a program to replace their gas tax with a fee for each mile citizens drive on public roads. The 5,000 people voluntarily participating in the test will be charged 1.5 cents per mile. Revenue from gas tax has been on the decline as vehicles get more fuel efficient and as hybrids and electric cars become more popular. This measure is an attempt to raise the amount of money the state takes in to pay for infrastructure projects. Many owners of those hybrid and electric vehicles are upset, saying it specifically targets them and discourages environmentally-friendly transportation. Others point out that those who drive electric vehicles need the roads maintained just as much as people still driving gas-powered cars.
Lower mpg vehicles often tend to be heavier (e.g. trucks & SUVs) which one assumes causes more wear than a lighter vehicle.
Currently, Oregon has a $0.30 per gallon fuel tax. Plus conversion factors for unusual fuels.
This $0.015/mile tax is equivalent, therefore, to the rate you'd be paying if your car got 20 mpg.
So the volunteers will come out ahead if they have gas-guzzlers, and way behind if they have even reasonably fuel efficient vehicles.
And in exchange for higher taxes on driving, they get the privilege of providing Oregon information on how much they travel and WHERE THEY TRAVEL.
What could possibly go wrong with this idea?
"I do not agree with what you say, but I will defend to the death your right to say it"
I am all about a use based Tax rather than a lump fee with car purchase or registration. Those who consume more (drive more) should pay more.
Mike @ The Geek Pub. Let's Make Stuff!
Since it's primarily weight per axle that determines the wear caused on the roads, and the point of the tax is to maintain roads, it seems logical that heavier vehicles, whether they be SUV's or big sedans like the Tesla, should be charged more. It's not like a Leaf is particularly heavy (it's basically the same weight as the similarly sized Chevy Cruze).
There are 4 boxes to use in the defense of liberty: soap, ballot, jury, ammo. Use in that order. Starting now.
Depends on how you implement it. A PAYG tax scheme was discussed in the Netherlands a few years ago, tariffs would have depended on the environmental rating of your vehicle, i.e. an old diesel would be taxed more than a new Euro-5 compliant one.
Over here the big advantages of PAYG were seen as:
- congestion pricing becomes possible
- it'd replace taxes on ownership and car purchase with usage-related pricing, incentivizing people to drive less.
The big disadvantage was the privacy concerns.
When you drive your car, I don't benefit.
When a trucker drives a semi, I benefit, because I buy products in stores.
So I'm more inclined to tax you.
Because drastically increasing the taxes everyone pays just to get to work and back or go to the store won't decrease consumer spending?
"The tree of liberty must be refreshed from time to time with the blood of patriots and tyrants." ~Thomas Jefferson
road damage from a prius vs road damage from a semi. Hmm. sounds equitable.
I'm an Oregonian.. and holy god, this is one of those proposals which needs to be killed with fire before it metastasizes.
I like how you don't acknowledge the fact that the poor tend to use public transportation, not privately owned cars. Or that you ignore that the middle class are the ones actually most likely to pay the most here considering they are the ones that live in suburbs outside of city centers.
My state legislators actually asked this question and got me thinking about a one time tax on tires. It has the benefits of the gas tax (anonymous, based on usage) but the added benefit that you can approximate the weight that a tire will carry on the road.
During a purchase you could either pay all taxes up front and be done with it or set up a monthly billing cycle so that poor can still make ends meet without dreading lost tread. Once taxes have been paid you are done and do not have to pay that tax until your next tire purchase. If a tire is expected to last 100k miles it, it is estimated to carry X weight for Y length of time (miles driven) meaning Z dollars in maintenance. Tax = Z - any other road infrastructure income/subsidies (gas tax still in effect could subsidized the tire tax making it cheaper).
This could also help spur better usage of tires (keeping them properly inflated [increasing MPG], rotating tires, etc). I am not sure how to handle used tires. Also, this doesn't help if you have to travel on dirt roads or poor roads that wear on tires more than pristine new black top.
Just a random thought, I haven't gave it much thought after initially discussing it with legislators.