Thanks to widely fluctuating fuel prices, there has been an ongoing debate about how to handle gas taxes. Some argue that there needs to be an artificial floor to keep price consistent while others feel taxes should be lowered to ease the burden on working-class families. However, Oregon’s Governor Ted Kulongoski has a completely different school of thought.
Kulongoski is pushing to do away with gas taxes entirely in favor of a mileage tax. Oregon’s Department of Transportation completed a study on mileage taxes just last year, and Kulongoski thinks the study proves the concept’s viability – especially in a more fuel-efficient world.
“As Oregonians drive less and demand more fuel-efficient vehicles, it is increasingly important that the state find a new way, other than the gas tax, to finance our transportation system,†Kulongoski’s website says.
Under Kulongoski proposed system, drivers would pay about 1.2 cents a mile and would receive a state credit of 24 cents per gallon of gasoline, according to Democrat-Herald. Mileage would be kept track of via a GPS system, with fuel stations equipped to read the system and charge drivers accordingly.
However, the proposal still faces plenty of public opposition. Many citizens are concerned the system would be used to track driving habits by the government, although ODOT contests “there can be no ‘tracking’ of vehicle movements†with the system.
The other concerns are with the cost and technology of the system. Just to make the system commercially viable would cost Oregon at least $20 million, not to mention the cost of equipping cars with the appropriate GPS systems. Cars not equipped with the mileage tracking system would still be subject to a state imposed gas tax.
There is no doubt that the mileage tax still has plenty of obstacles to overcome before it becomes viable, but, in the long run, is probably a better bet than a gas tax. With plug-in hybrids only years away from mass production, there could be a large number of Americans who rarely use gas, leaving the burden of funding transportation projects on the few that still rely on gasoline. With the implementation of a mileage tax, the playing field would be leveled for all.
