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Oregon Mulls Mileage, Not Gas, Tax

State worries about tax shortfall as vehicles get more efficient

By Rob Quinn,  Newser Staff

Posted Jan 3, 2009 9:57 AM CST

(Newser) – Worried that the rise of fuel-efficient and hybrid cars will wipe out revenue for road repair, Oregon is considering taxing drivers by the mile instead of by the gallon, reports the AP. Lawmakers—aware that hiking gas tax is a political kiss of death—believe a mileage tax is the way of the future, though critics have voiced privacy concerns and fears that the tax will kill the financial incentive to buy efficient cars.

The state has already tried a pilot program, equipping 300 vehicles with GPS monitoring devices that measure when, where, and how far a vehicle was driven, and sent the information to service station pumps. With its small auto sales market, Oregon won't be able to go it alone, but a half dozen other states and a congressional commission are also exploring the mileage tax idea.

Gas and diesel prices are displayed on a large billboard along Interstate 5 in Portland, Ore., Wednesday, June 4, 2008.
Gas and diesel prices are displayed on a large billboard along Interstate 5 in Portland, Ore., Wednesday, June 4, 2008.   (AP Photo/Don Ryan)
This undated photo released by the Oregon Department of Transportation shows a display device on the dashboard that indicates how many and what kind of miles a driver has driven.
This undated photo released by the Oregon Department of Transportation shows a display device on the dashboard that indicates how many and what kind of miles a driver has driven.   (AP Photo/Oregon Department of Transportation)
An electric vehicle charges in downtown Portland, Ore., Monday, June 9, 2008.
An electric vehicle charges in downtown Portland, Ore., Monday, June 9, 2008.   (AP Photo/Rick Bowmer)
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COMMENTS
Showing 2 of 2 comments
riffran
Jan 4, 2009 10:37 PM CST
damned if you do damned if you don't....it's all about the money...riff
Guest
Jan 3, 2009 8:29 PM CST
Wow, I guess the governments taxing plan on gallons and push for miles per gallon rated cards is kind of back firing. 2buyitnow.com

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