Wednesday, March 19, 2014

Oregon launches mileage tax trial


America has an extensive network of roads but many are not in good condition and need maintenance work. According to Oregon's Department of Transportation, 23% of road bridges in the state are "deficient or worse". The state has a new vehicle tax plan to pay for it, as described in the USA Today article below.

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Two years from now, thousands of Oregon drivers could get a taste of what the future may hold for the rest of us: They will pay taxes not on the amount of gasoline their cars burn, but on the number of miles they drive.
The move to a vehicle miles traveled (VMT) tax, if it happens, is still a long way off in most corners of the country. But that is why transportation experts and elected leaders are so interested in seeing whether Oregon can make it work.
"Per-mile charges are the most high-profile and discussed possible alternative to the gas tax," said Jaime Rall, a transportation policy specialist at the National Conference of State Legislatures. "There's no question about it: States want to know if this is going to be a viable way to fund transportation into the future."
States are looking for an alternative to the gas tax, because the per-gallon taxes often do not keep up with inflation, and they are bringing in less money as cars become more fuel-efficient.
Oregon hopes its new program using 5,000 volunteer drivers will show the public, not to mention hesitant lawmakers, that this alternative is easy and fair. And officials want to prove it can be done without Big Brother-type tracking devices.
Whether taxing miles instead of fuel is a good idea in theory, the Oregon project could answer questions about whether it is a good idea in practice. Seventeen other states have also tested the idea, but none has gone as far as Oregon has.

Full article

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