Startling legislation to eliminate the per-gallon gas tax in favor of a Vehicle Miles Traveled (VMT) tax is gaining traction in some of our more progressive states in this country. It seems that the current per-gallon gas tax being paid at the pump by motorists just isn’t keeping up with the rate of inflation lately, especially as American motorists are demanding more fuel-efficient vehicles. While infrastructure crumbles and bridges become unsafe, it should be no surprise that lawmakers are scrambling to keep their coffers padded by any means necessary.
As soon as next year, some misguided “volunteer” motorists in Washington and Oregon will be taking part in experimental programs in which tracking devices will be placed somewhere on their vehicles in order to log how many miles their vehicle has traveled. The state will then bill said motorist for the miles their vehicle has logged.
Think this eliminates the per-gallon tax at the pump? Think again
Motorists would still be obligated to pay the per-gallon gas tax at the pump which would supposedly be later subtracted from the amount they racked up in mileage taxes logged by the Big Brother, state-issued tracking devices they volunteered to have placed on their vehicles.
Motorists are then expected to allow the state to calculate the difference and send them a bill.
California too… Surprise Surprise.
In California, the state gas tax hovers around $0.53 cents per gallon.
The proposed VMT tax for California motorists would be $0.05 cents per mile. That means a two hundred mile commute (not all that uncommon in California) would cost motorists an extra 10 bucks per day.
California intends to generate $100 billion from motorists under VMT tax legislation in order to re-supply their depleted federal highway fund which was expected to run dry before the end of summer 2014.
You should think about keeping that old gas-guzzler
Motorists operating vehicles averaging fewer than 20 miles per gallon would theoretically pay less money under the VMT tax than the current per-gallon gas tax at the pump. Rumors of refund checks paid out to drivers of gas-guzzlers have been strategically circulated by shifty legislators and proponents of VMT legislation.
Less than surprising is how much the Obama administration seems to like the idea of VMT taxes. In 2011 the Department of Transportation drew up some legislation in order to study a VMT tax system. The bill provided $300 million for the project.
Conveniently, and shortly before VMT tax legislation began looking more and more like a reality, the Obama administration set efficiency goals of 54.5 miles per gallon by model year 2025. In California that works out to about $2.73 per gallon in VMT taxes on fuel-efficient vehicles. In a fifteen-gallon gas tank, that would be nearly $41 in taxes alone… every time the gas tank gets filled.
What about privacy?
Not surprisingly, motorists haven’t responded too keenly to the idea of Big Brother putting a tracking device on their personal vehicles. In an attempt to quell the discomforting thoughts that a state-issued tracking device might stir in motorists’ minds, some states have opted to contract this most disturbing aspect of the plan out to private companies. Additionally, current legislation in some participating states will supposedly require private entities to destroy location information collected from participating motorists within 30 days of using said information for billing purposes.
Once again, the possibility of this tax is rearing its ugly head throughout the nation. Election time is the perfect time to be considering it—and opposing it—as suggestions toward it make their way to each state’s legislature. Be aware of what supporters of this tax are doing…and educate yourself on the issue.