Mileage Tax Instead Of GasolineTax?

US states look at taxing mileage instead of gas Sunday, January 04, 2009 United States of America USA Portland (Oregon): Oregon is among a growing number of US 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 programme. 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 programmes 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. Governor 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 quartercent 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. AP

Worried that hybrid cars could threaten road upkeep, which is paid for with gas taxes, US states are mulling taxing mileage