News
January 3, 2009
States study taxing by the mile
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PORTLAND, Ore. - Oregon is among a growing number of states exploring ways to tax drivers based on the number of miles they drive instead of how much gas they use, even going so far as to install GPS monitoring devices in 300 vehicles.

The idea first emerged nearly 10 years ago as Oregon lawmakers worried that fuel-efficient cars such as gas-electric hybrids could pose a threat to road upkeep, which is paid for largely with gasoline taxes.

"I'm glad we're taking a look at it before the potholes get so big that we can't even get out of them," said Leroy Younglove, a Portland driver who participated in a recent pilot program.

The proposal is not without critics, including drivers who are concerned about privacy and others who fear the tax could eliminate the financial incentive for buying efficient vehicles.

Oregon is ahead of the nation in exploring the concept, even though it probably will be years before any mileage tax is adopted.

Congress is talking about it, too. A congressional commission has envisioned a system similar to the prototype Oregon tested in 2006-2007.

The National Commission on Surface Transportation Infrastructure Financing is considering calling for higher gas taxes to keep highways, bridges and transit programs in good shape.

However, over the long term, commission members say, the nation should consider taxing mileage rather than gasoline as drivers use more fuel-efficient and electric vehicles.

As cars burn less fuel, "the gas tax isn't going to fill the bill," said Rep. Peter DeFazio, D-Ore., a member of the House Transportation and Infrastructure Committee.

The next Congress "could begin to set the stage, perhaps looking at some much more robust pilot programs, to begin the research, to work with manufacturers."

Gov. Ted Kulongoski has included development money for the tax in his budget proposal, and interest is growing in a number of other states.

Governors in Idaho and Rhode Island have considered systems that would require drivers to report their mileage when they register vehicles.

In North Carolina last month, a panel suggested charging motorists a quarter-cent for every mile as a substitute for the gas tax.

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Posted By: Captain Obvious (9:29am 01-06-2009)
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Good point, weatherwatcher, except for one point: any form of "per measure of use" tax will be treated as a sin tax by the public.

A gas tax may deter gas-guzzlers on the road, but a per-mile travel tax will simply discourage vehicular travel, period. That may be one of the goals of the tax (i.e. urban containment, easing congestion, localizing commerce, greater HOV usage) but, sooner or later, the public will adapt their behavior to beat this tax, too. Revenue drops, and we're back to square one.

Tolling isn't the answer either. It's simply too much of a racket to get popular support.

Posted By: curiousme (4:02am 01-06-2009)
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Gas prices are already raising!! And they say its bc of the fighting in the MidEast....add this to the other lies they tell....

Posted By: weatherwatcher (11:35pm 01-05-2009)
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States are between a rock and a hard place when they rely solely on these "sin taxes" for everyday financing of public infrastructure. The problem is that the sin taxes rely on bad behavior and when that behavior is corrected, funding dries up. You see it with every sin tax on the books, Programs that rely on things like cigarette taxes, alcohol taxes, gas taxes will suffer when the wanted outcome (people use efficient cars, stop smoking, stop drinking) shrinks the income derived from those sources. The only other way out is to raise / institute income taxes which is why there is such a push for metro government which allows the collection of income taxes by cities.

Posted By: tyger (10:42pm 01-05-2009)
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Correct me, but aren't we already taxed per mile? The more miles driven = more gas = more gas taxes paid.

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