Some states want to punish fuel-efficient car drivers!

Oregon looks at taxing mileage instead of gasoline
By RYAN KOST, Associated Press Writer Ryan Kost, Associated Press Writer
– Sat Jan 3, 7:38 am ET



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.

But Oregon is ahead of the nation in exploring the concept, even though
it will probably 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.

But 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 of Oregon, 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.

James Whitty, the Oregon Department of Transportation employee in charge
of the state's effort, said he's also heard talk of mileage tax
proposals in Ohio, Pennsylvania, Florida, Colorado and Minnesota.

"There is kind of a coalition that's naturally forming around this," he
said.

Also fueling the search for alternatives is the political difficulty of
raising gasoline taxes.

The federal gas tax has not been raised since 1993, and nearly two dozen
states have not changed their taxes since 1997, according to the
American Road & Transportation Builders Association.

In Oregon's pilot program, officials equipped 300 vehicles with GPS
transponders that worked wirelessly with service station pumps, allowing
drivers to pay their mileage tax just as they do their gas tax.

Whitty said the test, which involved two gas stations in the Portland
area, proved the idea could work.

Though the GPS devices did not track the cars' locations in great
detail, they could determine when a driver had left certain zones, such
as the state of Oregon. They also kept track of the time the driving was
done, so a premium could be charged for rush-hour mileage.

The proposal envisions a gradual change, with manufacturers installing
the technology in new vehicles because retrofitting old cars would be
too expensive. Owners of older vehicles would continue to pay gasoline
taxes.

The difference in tax based on mileage or on gasoline would be small —
"pennies per transaction at the pump," Whitty said.

But the mileage tax still faces several major obstacles.

For one, Oregon accounts for only a small part of auto sales, so the
state can't go it alone. A multistate or national system would be needed.

Another concern is that such devices could threaten privacy. Whitty said
he and his task force have assured people that the program does not
track detailed movement and that driving history is not stored and
cannot be accessed by law enforcement agencies.

"I think most people will come to realize there is really no tracking
issue and will continue to buy new cars," Whitty said, noting that many
cell phones now come equipped with GPS, which has not deterred customers.

Others are worried that a mileage tax would undermine years of
incentives to switch toward more fuel-efficient vehicles.

"It doesn't seem fair," said Paul Niedergang of Portland, that a hybrid
would be taxed as much as his Dodge pickup. "I just think the gas tax
needs to be updated."

Lynda Williams, also of Portland, was not immediately sold on the idea
but said it was worth consideration.

"We all have to be open-minded," she said. "Our current system just
isn't working."

 

I think a moderate gas tax increase is long over due. Secondly, I
think if a charge by the mile system is instituted, large trucks MUST
be charged properly. Today's system subsidizes the trucking industry
in a major way. Truckers will not acknowledge this, but the fact are
pretty clear. Of course it is also true that drivers in urban areas
subsidize rural roads and drivers of fuel inefficient vehicles
subsidize Prius owners. A certain amount of unfairness is always going
to be present if we want a good road system not encumbered by
ridiculous tolls.

Ed

 

Are you stupid, or what?

You have posted this all over the automobile-based newsgroups, and have
received many replies that you do not have the ability to discuss.

Oregon, and all of the other states for that matter, have costs associated
with the building and maintenance of roads and highways. These costs are
funded through gasoline taxes. If the automobiles stop using gasoline and
the costs associated with the building and maintenance of the roads and
highways continue, where will the funding come from?

I'm not particularly in favor of the plan that Oregon is putting together,
but at least I understand the reasons, and "punishment" of fuel-efficiency
is not one of them. Having said that I'm not in favor of the Oregon plans, I
have no better solution. Surely, moving these costs to the big-rigs on the
mistaken notion that they are the sole cause of the need to build and
maintain roads and highways is not the answer.

 

....as the big-rigs will just pass on the additional costs back to you anyway
in the form of higher priced goods....

My opinion is there are just too many taxes, period. Pretty soon, they'll
have a tax for taking a crap. In NY, this Gov. wants to put what basically
amounts to a obesity tax. A 2 litter bottle of Diet Coke will cost $1.30,
while the regular Coke will cost you a $1.50. He must be blind! Taxes are
getting out of control.....Smaller Government & more personable
responsibility will aleivaite much....

IYM

 

What's worse is that diet drinks don't do crap for controlling weight. The
problem isn't Cokes, the problem is the type of food people eat. What
about those of us that don't drink diet drinks (I hate the taste of the
stuff), and drink the regular formula instead - and... we're not
overweight? So... we get penalized because we can control ourselves?

I can't see where this one has a snowball's chance in hell of standing up.

 

PORTLAND, Ore. – Oregon is among a growing number of states exploring

How long do you think it will take the aftermarket to sell us
satellite signal scramblers or some such to defeat the device?
Personally, I don't mind paying my fair share for roads if it is
reasonable and fair.
I like good roads...
ben

 

I agree!
Gas has been essentially gov subsidized for *far* too long.
I believe that at least 2/3 of Exxon's 16 Billion last quarter is
stolen from us with the governments help.
Monopolies are not good for us...

 

Yeah?

Then so must everyone who buys gasoline that's NOT used to fuel a car.
Lawnmowers, chainsaws, snowblowers, etc.--they need to be exempt from
the road tax.

Hey, if you're going to go to great lengths, at least get it right...

 

Well, the sheer volume of Diet <anything> will over power the "diet" part of
whatever it is.

My daughter wanted to go to a forum that was going to cost $2500. She sent
out a letter to the community asking for donations of plastic bottles and
aluminum cans.

One of the respondants asked us to come over and clean out his side yard of
2-liter Diet Pepsi bottles. There were hundreds of them! If he (the family)
was drinking one per day, it would have taken him years to collect all of
these bottles. His kid came out to help load the bottles -- the kid was
perhaps 6 feet tall, and must have weighed in well above 300 pounds. He is
17.

Of course, they could have been getting the Diet Pepsi free with the large
pizza, and that would mean the soft drinks were not the problem.

 

Perhaps if the feds and the states stopped taking so much of the road use
taxes and giving it to mass transit, we would not have a problem. Why do
the people that us MT not have to pay there own way? Why do the rural
drivers pay for them to ride for less?

How long do you think it will take the aftermarket to sell us
satellite signal scramblers or some such to defeat the device?
Personally, I don't mind paying my fair share for roads if it is
reasonable and fair.
I like good roads...
ben

 

Perhaps the taxes, that took 45% of the oil company income, that went to the
US treasury should be used to maintain the interstate highways. And why
the hell do Alaska and Hawaii get INTERSTATE highway funds or pay the 18.4
cent fuel taxes in the first place?

I agree!
Gas has been essentially gov subsidized for *far* too long.
I believe that at least 2/3 of Exxon's 16 Billion last quarter is
stolen from us with the governments help.
Monopolies are not good for us...

 

As our massive government surplus proves!

 

I've been saying that for a decade or more. If not for stupid,
short-sighted, idiot right-wingers, our country could be in great
shape right now.

The tax should be per gallon, to encourage efficiency.

 

Well, Jeffy, that was a very good post, coming from someone who
actually believes that the Earth is only about 10,000 years old...

 

Only thing proven is that taxes and spending have no relationship to each
other if you are the government. Both parties, both houses are guilty. Time
to toss the tea in the harbor again. Don't increase taxes, cut spending and
waste.

 

Bullshit, don't blame the right wingers. The left spends plenty too. BOTH
are part of the den of thieves.

Toss your neighbors into the mix also. Oh, let's vote yes on building that
new $20 million dollar white elephant, it is only costing us a few pennies,
the federal government will pay for the rest.

 

First of all, I just posted this, so I have not had time yet to respond.
Second of all I see people discussing this issue amongst themselves,
which was also part of my plan.

You are missing my point that pollution from autos causes problems and
that means money has to be spent on addressing those problems. Driving
fuel efficient and electric cars saves money by not hurting the
environment so much. We should not be creating the idea in people's
minds that driving cars that don't harm the environment is a bad thing.
What about a state road tax instead? California has proposed a "gas
guzzler" tax on SUVs and big pickups. There are other alternatives.

They might not be deliberately trying to punish those car owners, but
that's what it amounts to. I read a poster in another thread who
likened it to when his city told people to conserve water one year and
then raised the water tax the next year because people conserved so much
they lost too much money.

 

Umm "they" already do that--sewages taxes. I guess you think sewage
processing is free? I don't think most places have a flat rate on
that--the more you flush the more you pay. Are you worried about that
because you are full of crap?

 

I don't have sewage tax - Luckly, I live out in the burbs and have my own
septic system -

.....and yes, the only thime I use that system is when I am indeed full of
crap!

 

You wouldn't be saying that if you lived here in Europe. 80% of the
price of fuel is tax, so you'd be quickly saying goodbye to anything
with an engine bigger than 2.5 litres.

--
Pete M - OMF#9

BMW 325i SE Touring
Range Rover V8 Turbo
Renault 30 TX Auto

"Wait! We can't stop here, this is Bat Country"