Skip to Content

DAYS LEFT
Tax Season News:

Oregon Gov pushes pay-by-the-mile to replace gas tax

Text SizeAAA

Filed under: Tax, Transportation

The governor of Oregon is worried about the nation's embracing of high-mileage vehicles. The change could result in a sharp drop in gas tax revenue, leaving his state with a huge deficit, so his administration has come up with a workable alternative - the pay by the mile vehicle tax plan.

The transition to this plan, which would take some time, has been included in the state's new proposed transportation bill. How it would work--

Vehicles are equipped with GPS units that keep track of miles driven. When the driver refuels, a device at the pump reads the total miles driven since the last fill up and adds a per-mile tax charge to the final fuel bill. The gas tax portion of the final total would be deducted. In a test of this system by 300 Portland-area residents, the drivers paid 1.2 cents tax per mile driven and received a refund of their gas tax, 24 cents a gallon.

If my math is correct, vehicles that get 20 mpg would pay the same tax as before. Oddly, cars that get higher mileage would actually pay a higher tax under this plan. For example, a car that gets 30 mpg currently pays .8 cents per mile in gas tax. A gas guzzler that gets 10 mpg, on the other hand, would see its tax per mile cut in half.

I don't have a problem in revising the way funds are collected to keep the nation's roads maintained. I'm uneasy, however, with the government collecting yet another record of my personal life, in this instance, my travel habits. The state claims that the system will not collect any personal data, but I have a theory-- call it Barlow's Conjecture-- that any personal data that can be collected and added to master marketing databases eventually will be.

Despite my qualms, this is the most workable solution I've seen to sustaining state transportation revenue, and so I expect to see it show up on the planning board of many other states.

If you're interested in transportation, you may like
these related sites for: Maps, Driving Directions, Travel, and Cars.
Subscribe to Walletpop

Reader Comments (Page 1 of 1)

Find Your Next Car

Find Your Next Car

AOL Autos New Cars and Used Cars
Readers' Choice Winners for Best in Winter Travel
Votes have been cast for Best Ski Hotel, Best International Ski Destination, Best Caribbean Cruise ...
Readers' Choice Awards for Best in Sweets
Is there a maker of fine chocolate candy that makes your mouth water just thinking about it? Who ...

Ask the Dolans

Have a question about the "Cash for Clunkers" program or any other personal finance subject? Ken & Daria Dolan are here to help.

Ask your own questions to the Dolans

Julia Scott
Julia Scott Filed under: Bargain Babe

Borders coupon for 33% off

Here is the latest coupon from Borders. Get 33% off any one regular-priced item today through Thursday, Feb. 11. Some exclusions. Online use coupon code BSL7210X. One per person. The coupon also ...
Tom Barlow
Tom Barlow Filed under: Food

No seed shortage for gardeners this spring, despite reports to the contrary

Thanks to the recession, more Americans are interested in growing their own vegetables. Bad timing, according to an Associated Press report that seeds for some popular veggies might be in short supply ...
Mitch Lipka
Mitch Lipka Filed under: Recalls, Consumer Ally

Deaths spark crib recall: CSPC says to stop using Generation 2 and ChildESIGNS cribs

The U.S. Consumer Product Safety Commission is issuing a crib recall and warning anyone with Generation 2 Worldwide or "ChildESIGNS" drop side cribs to stop using them following reports of the deaths ...
Zac Bissonnette
Zac Bissonnette Filed under: Real Estate

Survey says? Homeowners think real estate collapse is over

A Thomson Reuters/University of Michigan survey published last week suggests that most homeowners think the worst is over, and don't anticipate further declines in the value of their properties in ...

Most Popular Car Makers



Headlines from WalletPop Partners