![]() From a funding perspective, a VMT fee would certainly level the playing field: instead of paying road taxes at the pump, drivers would pay based on how much they drive. ![]() What are the Pros and Cons of a Vehicle Mileage Tax versus charging a gas tax to generate state or national revenue for infrastructure and other projects? So, drivers whose vehicles get 22+ mpg would likely pay more in road usage charges than they do with gas taxes, while drivers who get less than that would pay less in road usage charges.įor over a decade now, a VMT has been proposed and piloted in various states (Oregon, California, Colorado and Washington have completed pilot programs). A VMT charges motorists based on their road usage measured in mileage through the use of an onboard vehicle (telematics) device to capture the distance driven by a vehicle through GPS.įor example, in the state of Washington, the break-even point for a gas tax versus a VMT is around 22 miles per gallon. Instead of using a tax on fuel consumption as a way of financing transportation infrastructure, a vehicle miles traveled tax (VMT) fee has been championed as the alternative. As an article by Citylab put it in 2013, “if the gas tax were a fuel gauge, its needle would be quivering pretty close to Empty.” With companies like Tesla pushing quick industry change for electric or more fuel-efficient vehicles, this is ever truer today.Īs more people purchase hybrid, electric, and fuel-efficient vehicles, gas tax revenues decline, states are eager to find a more sustainable source of revenue, and national politicians are watching closely.
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