The Obama administration on Friday quickly shot down a suggestion by Transportation Secretary Ray LaHood that motorists pay transportation taxes based on miles traveled instead of gallons consumed.
But states could still adopt a mileage tax approach to funding highway construction, and at least one state is studying the idea.Transportation planners around the nation have been contemplating a per-mile tax since at least 2002, when a study indicated it’s a practical idea that could be tailored any number of ways, depending on goals. Hummer owners, for instance, could pay a higher per-mile tax than folks in hybrids to encourage conservation. The charge could go up during rush hour to help convince commuters to use trains or buses.
Oregon, the first state in the nation to implement a gas tax back in 1919, is the closest to replacing it with a mileage tax.
A 2006-07 pilot project in which nearly 300 Oregon motorists paid by the mile instead of by the gallon showed that the system might not be as unpopular as it might sound. In the project, GPS units were installed in cars, and taxes were paid at two filling stations that downloaded mileage figures from the units.
More than 90 percent of Oregonians who agreed to allow the gadgets to keep track of their mileage said they’d be willing to keep the devices in their cars if the system was expanded to every gas station in the state, said James Whitty, manager of the Office of Innovative Partnerships and Alternative Funding at the Oregon Department of Transportation.
Motorists in the Oregon study drove 12 percent less than they would have otherwise, Whitty said.
“If you’re paying by the mile, you keep an eye on it,” said Patrick Cooney, spokesman for the Oregon Department of Transportation.
Installing equipment at every filling station in Oregon would cost about $35 million, Whitty said. Rather than retro-fit existing cars, motorists would continue paying per-gallon taxes until they bought new vehicles, under Oregon’s fledgling plan, which officials say is very preliminary. Legislators in the Beaver State have yet to approve the governor’s $10 million proposal for further study.
Oregon is 2,000 miles from Springfield in more ways than one.
“I don’t want the government knowing how many times my grandma goes to the grocery store every week or about whether she goes out to eat at this restaurant,” said state Rep. John Bradley, D-Morton, who is pushing a bill to raise Illinois’ fuel tax from 19 cents a gallon to 27 cents. “I don’t think people really want that.”
Don’t worry, Whitty says: Big Brother won’t necessarily be riding shotgun.
The units in Oregon’s experiment were configured so that they provided just one piece of information: how many miles were traveled inside the state. Devices that record mileage, not whereabouts, cost less than $100 apiece, Whitty said. Whether the tax would change based on location (a urban zone as opposed to a rural area, for instance) or time of day (rush hour as opposed to midnight) depends on what lawmakers want, he said.
“This is one of the issues that’s misunderstood,” Whitty said. “The system would allow any kind of a rate structure that a legislature wants to create.”
Human issues, Whitty said, outstrip technological ones.
“By far, public acceptability is the most difficult challenge,” Whitty said. “The public tends to have a visceral reaction against electronic mileage charging. They think they know what it is when, in fact, they don’t have any idea what we did.”
Fuel-tax collections in Illinois have been going down. In 2008, the state collected $17 million less in fuel taxes than in 2007, according to the state Department of Revenue. Collections rose between 2005 and 2007, but at a rate of less than 1 percent each year. Supporters of mileage-based taxes say the trend will only continue as electric cars and alternative fuels such as hydrogen or compressed natural gas gain acceptance.
Still, some lawmakers in Springfield are wary.
Rep. Rich Brauer, R-Petersburg, said money that’s supposed to go for roads and bridges is already been diverted for other things.
“We really don’t need any more money in that fund,” Brauer said.
Rep. Raymond Poe, R-Springfield, suggested a per-mile plan should exempt truckers, traveling salesmen and others whose livelihoods depend on long road trips.
“This will be a tough burden on them,” Poe said.
In Germany, trucks have been taxed on a per-mile basis since 2005, with charges based in part on emissions to encourage clean-burning engines.
“Like all German things, it’s technically brilliant but ridiculously expensive—it’s the Mercedes Benz of road-use charging,” said Peter Samuel, editor of Maryland-based tollroadsnews.com.
“I’m a supporter of tolls, the more the better,” Samuel said. “I think it’s a fairer way to charge people for the use of roads.”