MileageTax

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  • Oregon governor looking at GPS-based mileage tax to fund roads

    by 
    Donald Melanson
    Donald Melanson
    12.31.2008

    Electric cars and other fuel-efficient vehicles certainly have plenty going for them, but all that reduction in fuel consumption also has the side effect of reducing the money earned from gas taxes, which has prompted folks like Oregon governor Ted Kulongoski to turn to some alternative solutions to keep those funds rolling in. In the case of Oregon, Governor Kulongoski is proposing a mileage tax that would eventually replace the gas tax altogether, and make use of GPS units to determine just how far each person travels and bill them accordingly (Oregon is proposing a 1.2 cent per mile tax). To assuage privacy concerns, that information would apparently only be collected when the driver fuels up, and actual travel information supposedly wouldn't be tracked. Obviously, that system would only work if everyone had a GPS, so the governor is proposing an increase in the standard gas tax in the interim, with drivers already equipped with a GPS unit eligible for a refund on the taxes paid. All of this also still has to pass the Oregon legislature to become law, but it certainly wouldn't be the first time that the state broke with convention.