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Tuesday, August 16, 2011

GAS TAX COULD BE REPLACED WITH A MILEAGE FEE

Story first appeared in USA TODAY.
The age of free driving could be coming to an end. With the advent of GPS navigation that electronically tracks how far you drive; more states are looking at charging drivers by the mile.
Oregon, for instance, is among several states that are taking a hard look at the idea. As proposed in the Oregon legislature, drivers could be charged 0.85 cents per mile through 2015, with the figure jumping to 1.85 cents per mile by 2018. The bill, for the moment, appears stalled. Texas and Minnesota are reportedly also taking a look.
Mileage fees would take the place of gasoline taxes, which will decrease as more fuel-efficient and electric cars are introduced. The Detroit Bureau says the typical American motorist getting a combined 25 mpg today pays just under 2 cents a mile in gas taxes.
Still, the Big Brother aspects of taxing by the mile are sure to make any such plan an uphill battle.