Proposed 2020 By-the-Mile Road Tax Set to Raise Taxes on Hybrids, EVs Jason Mick (Blog) - July 2, 2009 11:18 AM
Prospective taxation changes look to catch taxes up to fuel efficiency gains
Fuel efficiencies have been steadily on the rise and will soon be raised substantially by new CAFE rules, which mandate that certain vehicle classes meet certain fuel economy levels. However, consumers tend to travel further in fuel efficient cars than they do in less efficient models. This means that the roads experience more wear and tear. Furthermore, the extra travel increases road congestion and will like necessitate new road construction.
Currently consumers pay an at-the-pump tax on gasoline to cover such expenses. However, as cars increasingly cover more mileage on less gas, these taxes likely won't be able to keep up with the expenses.
One solution is to raise the gas taxes -- but this is something consumers don't like, and many argue it is unfair to certain vehicle classes like heavy trucks. An alternative that is becoming increasingly popular is the idea of a per-mile road tax. Such a scenario would see the government monitor drivers' every movement via GPS to check how many miles they were driving and tax them appropriately.
A House-appointed 15-member National Surface Transportation Infrastructure Financing Commission just reached a unanimous decision that a mileage tax was the "best path forward". States Robert Atkinson, Ph.D., the chairperson of the Commission, "If you’re committed to the system being improved then it was a no-brainer."
The Commission suggested 2020 as the date to phase out gas taxes and install a mileage tax. Their current plan is to replace an 18.5 cents a gallon pump tax with a 1 to 2 cents per mile tax for cars and light trucks. For fuel efficient cars like the Toyota Prius or the Ford Fusion Hybrid, this has the potential to at least triple taxes.
Oregon has already been field testing such a road tax since 2007. And groundwork laid out by the University of Iowa’s Public Policy Center a decade ago provides a solid basis for how such a tax scheme can be ideally carried out. The University of Iowa just received a $16M USD government grant to carry out road tests with 2,700 vehicles in six states. The GPS-equipped vehicles will send data to the University "billing center" which will generate simulated "bills".
The tax would likely please owners of less fuel efficient vehicles like older cars or trucks. However, it would likely especially irritate owners of the upcoming generation of electric vehicles, which currently will pay no fuel tax if they operate only on plug power. Pete Rahn, director of the Missouri Department of Transportation complains, "The Chevrolet Volt won’t pay a penny of fuel tax."
Post subject: Re: Proposed for 2020: By-the-Mile Road Tax
Posted: Thu Jul 02, 2009 4:41 pm
Administrator
Joined: Sat Oct 16, 2004 10:51 pm Posts: 14534 Location: Mesa,AZ
I have no problem with by-the-mile road taxes, as long as (a) it's used for road maintenance, and (b) it also heavily factors in number of axles and/or weight. It's not really the sedans causing all the wear and tear on the roads, is it?
_________________
John Adams wrote:
In my many years I have come to a conclusion that one useless man is a shame, two is a law firm, and three or more is a congress.
Post subject: Re: Proposed for 2020: By-the-Mile Road Tax
Posted: Thu Jul 02, 2009 5:50 pm
Got Some
Joined: Wed May 09, 2007 5:58 pm Posts: 1259 Location: Western Masshole Gender: Male
broken iris wrote:
dscans wrote:
broken iris wrote:
Such a scenario would see the government monitor drivers' every movement via GPS to check how many miles they were driving and tax them appropriately.
this part concerns me
How else would mileage be measured? Odometers are easy to tamper with, even the computer based ones.
How will we root out terrorists in our own country if we don't tap people's phone lines? I don't have a compromise for this proposal but it just seems a little big brotherish to me.
_________________ Paul McCartney told me to never drop names.
Post subject: Re: Proposed for 2020: By-the-Mile Road Tax
Posted: Thu Jul 02, 2009 5:57 pm
Menace to Dogciety
Joined: Sat Oct 16, 2004 11:54 pm Posts: 12287 Location: Manguetown Gender: Male
And taxing cars for a damage mostly done by trucks...
_________________ There's just no mercy in your eyes There ain't no time to set things right And I'm afraid I've lost the fight I'm just a painful reminder Another day you leave behind
Post subject: Re: Proposed for 2020: By-the-Mile Road Tax
Posted: Thu Jul 02, 2009 6:24 pm
Red Mosquito, my libido
Joined: Sun May 21, 2006 2:02 am Posts: 91597 Location: Sector 7-G
broken iris wrote:
dscans wrote:
broken iris wrote:
Such a scenario would see the government monitor drivers' every movement via GPS to check how many miles they were driving and tax them appropriately.
this part concerns me
How else would mileage be measured? Odometers are easy to tamper with, even the computer based ones.
I'm of the belief that if you can't come up with a way to execute an idea without violating my privacy and civil rights, then you have to come up with a new idea.
_________________ It takes a big man to make a threat on the internet.
Post subject: Re: Proposed for 2020: By-the-Mile Road Tax
Posted: Thu Jul 02, 2009 6:36 pm
a joke
Joined: Sun Oct 17, 2004 3:08 am Posts: 22978 Gender: Male
cutuphalfdead wrote:
I'm of the belief that if you can't come up with a way to execute an idea without violating my privacy and civil rights, then you have to come up with a new idea.
Post subject: Re: Proposed for 2020: By-the-Mile Road Tax
Posted: Thu Jul 02, 2009 7:23 pm
Red Mosquito, my libido
Joined: Sun May 21, 2006 2:02 am Posts: 91597 Location: Sector 7-G
edzeppe wrote:
cutuphalfdead wrote:
I'm of the belief that if you can't come up with a way to execute an idea without violating my privacy and civil rights, then you have to come up with a new idea.
Thats my thought on legalizing marijuana.
Go on...
_________________ It takes a big man to make a threat on the internet.
Post subject: Re: Proposed for 2020: By-the-Mile Road Tax
Posted: Thu Jul 02, 2009 7:28 pm
a joke
Joined: Sun Oct 17, 2004 3:08 am Posts: 22978 Gender: Male
cutuphalfdead wrote:
edzeppe wrote:
cutuphalfdead wrote:
I'm of the belief that if you can't come up with a way to execute an idea without violating my privacy and civil rights, then you have to come up with a new idea.
Post subject: Re: Proposed for 2020: By-the-Mile Road Tax
Posted: Thu Jul 02, 2009 7:31 pm
Reissued
Joined: Sun Oct 24, 2004 3:38 pm Posts: 20059 Gender: Male
edzeppe wrote:
cutuphalfdead wrote:
edzeppe wrote:
cutuphalfdead wrote:
I'm of the belief that if you can't come up with a way to execute an idea without violating my privacy and civil rights, then you have to come up with a new idea.
Thats my thought on legalizing marijuana.
Go on...
Ive said it a million times. Go find it, lazy.
and i still disagree
_________________ stop light plays its part, so I would say you've got a part
Post subject: Re: Proposed for 2020: By-the-Mile Road Tax
Posted: Thu Jul 02, 2009 7:33 pm
Red Mosquito, my libido
Joined: Sun May 21, 2006 2:02 am Posts: 91597 Location: Sector 7-G
edzeppe wrote:
cutuphalfdead wrote:
edzeppe wrote:
cutuphalfdead wrote:
I'm of the belief that if you can't come up with a way to execute an idea without violating my privacy and civil rights, then you have to come up with a new idea.
Thats my thought on legalizing marijuana.
Go on...
Ive said it a million times. Go find it, lazy.
But I don't wanna!
_________________ It takes a big man to make a threat on the internet.
Such a scenario would see the government monitor drivers' every movement via GPS to check how many miles they were driving and tax them appropriately.
_________________ "Socialism never took root in America because the poor see themselves not as an exploited proletariat but as temporarily embarrassed millionaires." -- John Steinbeck
Post subject: Re: Proposed for 2020: By-the-Mile Road Tax
Posted: Thu Jul 02, 2009 8:05 pm
Former PJ Drummer
Joined: Mon Oct 18, 2004 5:51 am Posts: 17078 Location: TX
This looks like a fucking terrible idea. I don't even know where to start.
1. Cars and SUVs taxed equally, while SUVs damage roads much more.
2. government monitoring every movement... no thanks
3. Get rid of the gas tax and you encourage SUV and F-350 owners to drive more... great idea.
Basically this proposal is saying "We want to make it easier and less painful for SUV and truck owners and to do that we are going to make things harder on small vehicle owners". And that's to say nothing of the matter of commercial trucks causing most damage.
Post subject: Re: Proposed for 2020: By-the-Mile Road Tax
Posted: Thu Jul 02, 2009 8:07 pm
Former PJ Drummer
Joined: Mon Oct 18, 2004 5:51 am Posts: 17078 Location: TX
Also, what kind of biased fucking board unanimously thought this was the best thing moving forward? Let me guess, the board was composed of Michigan democrats and Texas R's appointed by GWB.
Oregon envisions gas tax based on miles, not gallons by Edward Walsh, The Oregonian Wednesday January 14, 2009, 8:29 PM
Gov. Ted Kulongoski wants the state to become a center for the production of electric vehicles.
In Washington, D.C., the incoming Obama administration and Congress are pushing automakers to improve fuel efficiency and build cars that run on some fuel other than gasoline.
All of this would reduce the nation's dependence on foreign oil, but it also would reduce Oregon's revenue from the gas tax, the main source of money to maintain and improve the Oregon highway system.
As a result, the Oregon Department of Transportation is in the early stages of an experiment to meet the expected decline in gas tax revenue by developing a transportation tax system that is based not on gallons purchased at the pump but on miles traveled within the state.
It's called a "vehicle mileage tax," and it's raising concerns over privacy and practicality.
Kulongoski's proposed 2009-11 budget includes $10 million to continue the experiment, which most recently involved a pilot project in Portland using 285 vehicles and two service stations that were equipped with technology that calculates the mileage fee.
"This is not something the governor expects to be in place next year or even in five years," said Anna Richter-Taylor, Kulongoski's spokeswoman. "It's probably eight to 10 years away. But gas tax revenues are not sustainable so he wants to be sure that when we do face that cliff, we don't fall off."
The Oregon Constitution mandates that gas tax revenues can only be spent to maintain and improve the state highway system. They account for about 60 percent of ODOT's highway budget. That budget is getting squeezed from two directions, said James Whitty, manager of the agency's Office of Innovative Partnerships and Alternative Funding.
One is inflation, driven by the rising cost of building materials and labor, which has been running at about 5 percent a year. The other is a decline in revenues due to improved fuel efficiency that costs the highway budget one-half of 1 percent in each of the past two years, Whitty said.
The Legislature saw this coming. In 2001, lawmakers created a task force to study alternatives to the gas tax.
The result is the proposal that uses Global Positioning System equipment to track miles traveled within Oregon. Whitty said the technology exists but needs to be perfected before a mileage-based tax system could be developed statewide.
How it would work ODOT conducted the pilot project with help from engineers from Oregon State University. The system requires vehicles to be equipped with GPS devices and for service station pumps to have electronic reading devices to collect mileage data from the vehicles.
The pump reading devices first determine electronically whether a vehicle is equipped to pay a mileage-based fee. If not, the normal gas tax is applied to the transaction. For vehicles with a GPS device, a mileage fee would be added to the cost, and the gas tax would be deducted.
ODOT has concluded that it would be too difficult and expensive to retrofit existing vehicles to pay a mileage-based fee, so the new system would apply only to new vehicles with the necessary GPS devices. Whitty said that means it would take 20 years or more to phase in a new system completely.
Before that process even begins, there are dozens of issues to be resolved.
Zoned fees The Legislature would have to set the mileage fee and decide whether additional fees should apply for miles traveled in designated zones -- for example, Interstate 5 in Portland during rush hour. A mileage-based tax system would make such "congestion pricing" feasible.
Whitty said the biggest single concern is privacy and public suspicion that a GPS-based system could be used to track motorists. He said the devices used in the pilot project did not send out an identifying signal and did not store any data for later retrieval.
"The device could locate itself but nobody else could track it," he said.
Others have complained that a mileage-based tax would be unfair because gas guzzlers would be charged the same fee as fuel-efficient vehicles driven the same distance. Whitty said depending on what policy makers decide, a fee system could be devised that would reward fuel-efficient vehicles.
There are many other hurdles to clear before Oregon gets close to replacing the gas tax, including the willingness of manufacturers to make the GPS devices standard equipment in new vehicles. But Whitty said the need to do that will become increasingly clear.
"Vehicles are coming that get upwards of 100 miles per gallon and electric vehicles are coming," he said. "They're not too far away, and they won't pay any gas tax. We need a road revenue system that can sustain itself."
Senate Business and Transportation Committee Chairman Rick Metsger, D-Welches, said he is not ready to commit to the $10 million that Kulongoski seeks in his budget, but he supports continued experiments into alternatives to the traditional gas tax. He said the solution will probably have to come from the federal government, but only after states such as Oregon lead the way with such experiments.
"As we look into the future, we have to come up with a way to pay for transportation without assuming the amount of gasoline you buy is the basis for it," Metsger said.
Post subject: Re: Proposed for 2020: By-the-Mile Road Tax
Posted: Tue Jul 07, 2009 5:39 pm
Supersonic
Joined: Thu Nov 04, 2004 2:43 am Posts: 10694
Quote:
Basically this proposal is saying "We want to make it easier and less painful for SUV and truck owners and to do that we are going to make things harder on small vehicle owners". And that's to say nothing of the matter of commercial trucks causing most damage. - B-hed
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