"It will be a hard sell."
Plan shifts tax from gallon to mile
February 5, 2006
Tony Hartzel
Dallas Morning News
Copyright 2006
In the not-too-distant future, motorists may have to start viewing their vehicles' odometers as personal taxicab meters.
Researchers in Oregon, at the request of that state's lawmakers, are testing the idea of a tax that is based on the number of miles driven. The idea is still years away from reality, and many obstacles remain. But it is getting attention.
"It will be a hard sell. It's been a hard sell in Oregon," said David Porter, an assistant professor of industrial and manufacturing engineering at Oregon State University who helped develop the program.
Speaking at the University of Texas at Arlington last week, Dr. Porter said the increased fuel efficiency of vehicles has prompted the push to find new ways to raise money. Because motorists pay a set tax for each gallon purchased, increasingly fuel-efficient cars mean people drive farther between fill-ups – and therefore don't pay as much in taxes.
Increased fuel efficiency is expected to have an even more dramatic effect as fuel taxes level off in the future, Dr. Porter said.
"We've seen some of that already. It's not as significant as we expected. But we expect to see more of that in the next 10 years," he said.
What's at stake
Fuel taxes play the largest role in getting roads built. In Texas, motorists pay 20 cents per gallon to the state and 18.4 cents to the federal government. Each year, the state collects about $2.1 billion for roads and $723 million for public education. Texas also receives about $3.3 billion from the federal government.
In Oregon and Texas, political leaders have been reluctant to raise the gas tax. Oregon voters rejected an attempt to raise theirs in 1999.
Local and national leaders also have mentioned the possibility of mileage-based taxes as the need grows to find money for increasingly expensive transportation projects. In Texas, much of the attention so far has focused on toll roads as a way to raise revenue for other projects.
Road test
Starting next month, 280 Portland-area volunteers will participate in a full pilot study. Those motorists will pay about 1.25 cents per mile to drive, but the Oregon tax of 24 cents per gallon will be deducted when they buy gas at select stations. In addition, some of the participants will be asked to pay about 4.3 cents per mile for driving in peak commute times, Dr. Porter said.
"In the future, you can make a very specific system when it comes to collecting miles in specific zones," he said. The fee could vary based on fuel efficiency, which would encourage motorists to conserve gas, Dr. Porter added.
Mileage information will be collected with global positioning system satellites and transmitters. That information will be transferred wirelessly at gas stations. Data will be collected on the number of miles driven during peak and off-peak times. Because the study focuses on replacing the state gas tax, Portland-area motorists will not be charged a mileage tax for driving in other states.
The study raises privacy concerns, but the data collected will count only the number of miles and can place vehicles only in general areas. It cannot determine a vehicle's precise location, and the equipment does not store travel history, Dr. Porter said.
"People freak out and think we're following them everywhere they go," he said. "That's not going to happen."
Tony Hartzel can be reached at thartzel@dallasnews.com and at P.O. Box 655237, Dallas, Texas 75265.
© 2006 The Dallas Morning News Co www.dallasnews.com
February 5, 2006
Tony Hartzel
Dallas Morning News
Copyright 2006
In the not-too-distant future, motorists may have to start viewing their vehicles' odometers as personal taxicab meters.
Researchers in Oregon, at the request of that state's lawmakers, are testing the idea of a tax that is based on the number of miles driven. The idea is still years away from reality, and many obstacles remain. But it is getting attention.
"It will be a hard sell. It's been a hard sell in Oregon," said David Porter, an assistant professor of industrial and manufacturing engineering at Oregon State University who helped develop the program.
Speaking at the University of Texas at Arlington last week, Dr. Porter said the increased fuel efficiency of vehicles has prompted the push to find new ways to raise money. Because motorists pay a set tax for each gallon purchased, increasingly fuel-efficient cars mean people drive farther between fill-ups – and therefore don't pay as much in taxes.
Increased fuel efficiency is expected to have an even more dramatic effect as fuel taxes level off in the future, Dr. Porter said.
"We've seen some of that already. It's not as significant as we expected. But we expect to see more of that in the next 10 years," he said.
What's at stake
Fuel taxes play the largest role in getting roads built. In Texas, motorists pay 20 cents per gallon to the state and 18.4 cents to the federal government. Each year, the state collects about $2.1 billion for roads and $723 million for public education. Texas also receives about $3.3 billion from the federal government.
In Oregon and Texas, political leaders have been reluctant to raise the gas tax. Oregon voters rejected an attempt to raise theirs in 1999.
Local and national leaders also have mentioned the possibility of mileage-based taxes as the need grows to find money for increasingly expensive transportation projects. In Texas, much of the attention so far has focused on toll roads as a way to raise revenue for other projects.
Road test
Starting next month, 280 Portland-area volunteers will participate in a full pilot study. Those motorists will pay about 1.25 cents per mile to drive, but the Oregon tax of 24 cents per gallon will be deducted when they buy gas at select stations. In addition, some of the participants will be asked to pay about 4.3 cents per mile for driving in peak commute times, Dr. Porter said.
"In the future, you can make a very specific system when it comes to collecting miles in specific zones," he said. The fee could vary based on fuel efficiency, which would encourage motorists to conserve gas, Dr. Porter added.
Mileage information will be collected with global positioning system satellites and transmitters. That information will be transferred wirelessly at gas stations. Data will be collected on the number of miles driven during peak and off-peak times. Because the study focuses on replacing the state gas tax, Portland-area motorists will not be charged a mileage tax for driving in other states.
The study raises privacy concerns, but the data collected will count only the number of miles and can place vehicles only in general areas. It cannot determine a vehicle's precise location, and the equipment does not store travel history, Dr. Porter said.
"People freak out and think we're following them everywhere they go," he said. "That's not going to happen."
Tony Hartzel can be reached at thartzel@dallasnews.com and at P.O. Box 655237, Dallas, Texas 75265.
© 2006 The Dallas Morning News Co
posted by Porkus Maximus Tex: at Sunday, February 05, 2006
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