Oregon considers taxing mileage, not gas
Oregon ran a pilot program in 2006 and 2007 that fitted 300 cars with GPS receivers, which kept track of the cars' mileage. The receivers also kept records of when the cars were on the road, noting whether they traveled during rush hour or not. When the drivers went to several specially-equipped gas stations, they paid a mileage tax based on how far they had driven and when they drove, rush hour being more expensive than the wee hours.Taxing mileage -- as opposed to trying to raise fuel taxes -- is an idea that's not only raising eyebrows, it's also raising interest. Seven other states are reported to be interested in finding a publicly-palatable way to tax mileage. A panel in North Carolina even recommended that drivers be charged a quarter-cent-per-mile for their year's driving. In such a scenario, after 15,000 miles you'd owe the state $37.50.
Naturally, the hurdles are many and it will be years before we see anything like this happening -- but beware: it's gone beyond "Let's think about it" to "Let's look into this." States envision working with manufacturers to get the standardized mileage-reporting technology installed in cars. In addition to the substantial privacy issues that would raised by such a move, there's a question of whether a flat mileage tax would blunt the move to energy-efficient vehicles -- the gent in the Prius might not be happy about paying the same as the gent in the F-250 Super Duty.
[Source: Yahoo!]
Reader Comments (Page 1 of 3)
kaluwi 11:04AM (1/04/2009)
I think a better way to implement this system already exists in Singapore; have sensors at entry points to congested parts of the city and every car has a little unit that deducts credits from your account every time you enter said parts during high-traffic periods of the week. It would probably cost a lot less then installing GPS units in every car and a reader in every gas station.
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Polly Prissy Pants 11:51AM (1/04/2009)
But why does it have to be so complicated? Just charge a gas tax, or a mileage tax based on the amount of miles driven per year. They record that every time you get your annual safety inspection in most states. If they want more money that ought to at least have the balls to say so instead of coming up with all these extra fees and surcharges ala the airline industry.
Sea Urchin 12:07PM (1/04/2009)
What you proposed is very effective and cheap, but i think the cheapest way to do it is to increase gas tax.
Also having a GPS will be challenged in court as a privacy issue.
Let's say you a suspect in a murder case, can police look at your GPS record to determine if you were in the location? The GPS program could easily be unconstitutional.
1337 12:39PM (1/04/2009)
If you absolutely must track distance traveled, then yes, it makes more sense to read odometers than to install GPS devices. Odometers can be tampered with, but I bet your average hackz0r could also rig the GPS.
When one refers to taxing "mileage," I think that should be "fuel mileage." If your daily driver is V8 Suburban and you have no passengers, perhaps you should pay an annual tax premium over the person who squeezes 70MPG out of their eight-year-old Honda Insight.
The best way to tax high fuel consumption is to instate a gas tax.
cFoo 12:49PM (1/04/2009)
What works in Singapore or any other cities in Asia will not work here because North Americans are too ignorant and too much in love with their gas guzzler. They will be up in arm if cars are taxed by the engine CC or huge license fees.
Judy Zik 12:53PM (1/04/2009)
This is the dumbest idea ever. How much of the money you pay is going to be taken up in the cost of having and maintaining all of these GPS devices in everyone's car and policing this system? Imagine the technical issues like a farmer getting charged for driving around on his private property by accident. Then there is the whole new layer of administration to deal with it and collecting it. Plus they will want to charge you more for driving downtown so they will need to install that system. Even just taxing mileage from the Odometer is stupid because it takes away any incentive to drive smaller or more efficient vehicles and doesn't make any allowance for a rancher driving around his own property all day. The gas tax does with untaxed diesel for farmers. There is already an existing tax buracracy in place for gas taxes. Raising that tax is more efficient since it just increases the income from the same buracracy.
JIm 11:07AM (1/04/2009)
Here in SoCal we are constantly offered "trials" of one sort or another, mostly medical. Those signing up do something, or take something for which they are payed a sum at the end of the trial.
A couple of months ago a new trial was being offered. Sponsored by the University of Iowa people were asked to put GPS receivers in their cars to "monitor driving habits." The trial was to last some period of time and "trialees" would be given $900 or so to do this.
I have no idea who was behind this, the feds or a state.
Does anyone else think this whole monitor driving habits/road tax thing has big brother written all over it.
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Rocketboy 1:28PM (1/04/2009)
No, no big brother issue at all. I mean, it's not like Ez-Pass, or any of the other type of automated toll paying devices's records were ever used in something as stilly as a Civil case, say a divorce...
Oh wait...
Avinash machado 11:07AM (1/04/2009)
Tax seems to be the favorite word of politicians this year.
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waiownsyou 11:12AM (1/04/2009)
I know, right?
Income tax always screws me enough over, along with school, water, property, sales, and a lot more. We're in a recession and they still want to take more money from our pockets? Come on. Nice way to stimulate the economy of the government.
Ugh.
Carlos 11:31AM (1/04/2009)
You can thank our over eager politicians for spending more than they receive. Then make sure to thank yourself for putting them into office.
Travis 11:47AM (1/04/2009)
@waiownsyou - God, if I have to listen to any more of this "raising taxes in a recession is going to doom us all" bullsh!t from republifundies I'm going to f'ing scream. If there was one iota of truth to that, then we should have been raising taxes during prosperity to stockpile cash so that when a recession hits, we can cut taxes and not go into massive deficit. So according to conservatives:
During a fiscal surplus - tax cuts to "give the people back their money"
During fiscal deficits - tax cuts since reducing taxes increases tax revenue (thank you Laffer)
During financial prosperity - tax cuts since we're bringing in more money through national financial growth
During recessions - tax cuts to stimulate the economy
During (insert any scenario here) - tax cuts to (make up some bullsh!t reason)
Guess what, as a country, as states, and as local municipalities, we've spent ourselves into oblivion, and other than the federal government, we can't just print more money to get ourselves out of this mess. Do I hate paying taxes as much as anyone else? Sure! Do I understand that if we want services, like roads cleared of snow in the winter, potholes fixed in the summer, police and firefighter services when we get into trouble, bridges that won't collapse, etc etc etc, we have to pay for those services? I have no idea how the "conservatives" (who spent like drunken sailors during the last 8 years) expect to pay for their massive programs, their never-ending wars, their expanded military programs, and their vast tax cuts by cutting taxes wherever and whenever possible.
Personally, I hate this idea of a mileage tax instead of a gas tax, since I choose to drive small, economical cars instead of behemoth 8 person SUVs. But this whole "OMFG taxes are evil" mindset has got to stop...
Dan 12:09PM (1/04/2009)
This isn't about the federal government, it's about Oregon. You can count the "republifundies" in Oregon on one hand, and they aren't in higher office. The last Republican governor left office in 1987.
Find another strawman for why they can't spend within their means.
larry a 1:19AM (1/05/2009)
lol should have voted for ron paul guys, he hates taxes more than anyone in congress, but thats why i like living in florida, no state income tax, no car inspections, but property tax is pretty high and you have to run the airconditioner year round and the roads suck and its probably one of the dumbest states in america
MajorGeek 11:15AM (1/04/2009)
Awesome, so since I own 5 cars and work from home, I basically would be exempt from this tax? Best tax I have heard of so far.
And on a serious note, your all correct about raising taxes during a recession and big brother on this. At some point our lovely government needs to start listening to the people again because these guy are simply just not that bright.
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Avinash machado 11:22AM (1/04/2009)
Maybe they can hold an referendum like they do in Switzerland.
rndmnme 1:01PM (1/04/2009)
Wonder what all those people who elected Obama thought was going to happen?
Let's increase income tax returns, increase state and federal job programs, increase social welfare programs, and have a national healthcare plan.
Where did they think this money was coming from?
Oh yeah, the "rich people."
(PS, alot of those "rich people" are in congress, you do the math)
Rufus 11:54PM (1/04/2009)
Tax Congress... brilliant.
010111 9:08AM (1/05/2009)
"rndmnme 1:01PM (1/04/2009)
Wonder what all those people who elected Obama thought was going to happen?"
what does Obama have to do with Oregon state taxes? that's a mighty leap in logic. i'd love a clarification... i'm sure it will be intellectually riveting.
TJ 11:18AM (1/04/2009)
I don't see the point of this crap. A flat raise in the gas tax makes much more sense. I'm even against that, since our country takes in more than enough money to pay for everything. They should be forced to refine their spending and stop stupid crap like this. Honestly, its sickening how fat and corrupt Washington is.
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