Instead of taxing fuel to finance road infrastructure, a VMT tax system charges motorists based on their "road consumption," as measured by total miles traveled. VMT could be implemented via the use of GPS units, which records distance traveled and charges motorist accordingly.
Unsurprisingly, as with other taxes, VMT has its critics. Some motorists see VMT systems tracking your every move as an invasion of privacy. Others claim that VMT could become a roadblock that hinders the adoption of electric vehicle. Some even argue that the tax is unfair because it singles out a single type of vehicle. What's your take?
[Source: Plugin Cars]