Taxing cars by miles driven already going in two states with more moving forward

With larger numbers of new kinds of cars using roadways, states are moving ahead to shift away from a gas tax to fund roads:

Photo by Markus Spiske on Pexels.com

The Oregon task force put the state at the forefront of the new approach, known as a road-user charge or a vehicle miles-traveled (VMT) tax. The state launched a voluntary program in 2015. Legislators in Salem are considering a bill that would make the program mandatory for new vehicles with a fuel economy rating of 30 miles per gallon or higher starting in 2026…

Utah’s program was launched last year and has enrolled more drivers than Oregon’s. A dozen states are considering legislation this year to update, launch or study programs, including California — where the governor wants to end sales of gas-powered cars by 2035 — and Wyoming…

Officials in Oregon say objections can be overcome as the public becomes more familiar with the new systems and research debunks concerns that some drivers, especially those in rural areas, will be disproportionately affected…

Oregon’s tax rate of 1.8 cents per mile is equivalent to the 36-cent gas tax paid by a vehicle that gets 20 miles per gallon. Someone driving about 11,500 miles a year would pay about $207. That leaves owners of hybrids paying more than they otherwise would. It would be a good deal for drivers of large SUVs or pickup trucks, but in 2019, the legislature limited enrollment of new vehicles to those that get at least 20 miles per gallon.

This has been years in the making; see earlier posts here and here. The gas tax will generate less revenue as states and carmakers move away from gasoline engines. Something will need to change.

How drivers respond will be interesting. Will this discourage driving? Move people more quickly or less quickly to new technologies? Encourage fleets of electric cars rather than individual ownership?

And the ripple effects are hard to anticipate. What does this do with the trucking industry which is responsible for delivering many critical goods? Does this lead to better maintained roads? Will this encourage more interest and funding for mass transit?

Or, the funding could smoothly transition over time and Americans continue their love of and support for driving. And this and others changing aspects of driving could simply change the whole experience of driving without eliminating driving, ranging from commuting patterns to visiting gas stations and fast food places to road trips.

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