Tuesday, January 5, 2010

Would You Prefer A Tax Based On How Much You Drive?

Don't like paying a gas tax? Would you prefer a tax based on the number of miles you drive per year?

That's what the Texas Transportation Commission is considering, and the idea has come up around here in recent years too. The tax would be a way to fund transportation projects in a time when a lot of funding options are going away.

Here's more on the proposed Texas tax. What's your opinion on a tax based on how much you drive each year? Good idea or bad and why?

14 comments:

Rachel said...

I think I prefer the gas tax. It *is* somewhat related to the amount of driving you do; more driving = more taxes, less driving = less taxes. But it also is higher for people driving less fuel-efficient cars. If everyone pays the same tax, based only on the number of miles driven, what extra incentive is there to drive a fuel-efficient car?
Many people are never going to use alternative forms of transportation, but having to pay that much more for driving your Hummer rather than your Honda or Prius may just help people chose the route of fuel-efficiency.

SRTC Staff said...

You're right Rachel, after comparing the two taxes the main difference seems to be that the socially responsible will pay less by driving more fuel-efficient cars.

An argument for the 'by the mile tax' that I have heard though is that those who are less financially well off will be taxed more because they can't afford more efficient cars and that paying more taxes keeps them in the cycle of being poor.

Charles said...

How would you record the miles you drive? I have seen some older cars where the odometer does not work. Does this mean another tax form to fill out? Gas tax is relatively easy to collect and it is roughly based on miles driven so I think it is better than a new tax.

SRTC Staff said...

There would supposedly be a couple ways to prove how much you drove, such as paying for your mileage at an annual inspection where they compare the mileage from the previous year to this year, putting GPS units in every car, or using some sort of technology that communicates with the gas pump to determine how much gas you pumped and translate that into how many miles you will drive. Either way, it's not going to be cheap and they say it would take almost a decade to implement. Supporters worry that, with more people riding buses, walking, and bicycling, revenues from gas tax are going to be non-existent soon and they need to find an alternative to that. I'm not sure putting a ton of money into technology to implement a pay-by-the-mile system is the best way to do that though.

Anonymous said...

Growth management fans like the vehicle miles tax because it gives people incentive to live in urban areas near the services they need despite how efficient their cars become.

Depending on electric vehicles/improved hybrids may not be too far into the future. The majority of gas tax revenue could disappear within 20 years (especially if we see another spike in oil prices).

SRTC Staff said...

I know that all the area jurisdictions were running scared a couple years ago when gas prices were so high and everyone was taking the bus and riding their bikes because their gas tax revenue dropped wwwaayy down. I think that was a real eye opener about what could come in the future so now the search is on for a way to keep the money coming in.

Steve said...

My biggest problem with this approach is that a politician never met a tax he didn't like. Everyone who thinks gas taxes will be REPLACED by a mileage-based tax, raise your hand.

No hands?

The more likely scenario is that they manage to institute a mileage-based tax ON TOP OF the gas tax. I'll pass on that, thanks.

SRTC Staff said...

You could be right Steve. Especially because it will take the new tax a while to get implemented and the kinks worked out (to get the right technolgy in everyone's car, etc.), the two taxes would probably run simultaneously, at least for a while.

Rachel said...

I consider myself to be in the lower class, and I'd still rather pay a gas tax than a miles-driven tax.

Many many "poor" people don't drive already: they can't afford the gas and/or they can't afford a car. So it seems like a weak argument that they'd have to pay more with either type of tax.

I suppose this excludes the country-dwelling folk who do not have any alternative forms of transportation available... but they can still plan in ways to minimize the # of miles driven, or even carpool.

If you ask me, it sounds like the people who want to switch from a gas to a mileage tax are the people with their new $30K SUVs, just because they don't want to pay extra for using more fuel.
;-)

Rachel said...

Ok, Anonymous had a good point I hadn't thought of: Fear of losing revenue to hybrid and electric cars. I suppose those people are still driving but aren't consuming much, if any, gas.
Still, if they want people to switch to fuel-efficient cars, they need to figure out a different way to tax road-users.

SRTC Staff said...

Actually Rachel, the people who live in outlying areas WOULDN'T be exempt. The possibility of going to a pay-by-the-mile system keeps coming up around here (due to Governor Gregoire's climate change directive) and it could have a serious impact on my own habits. I live in an outlying area and drive to Liberty Lake to take the bus. I have talked to my parents about crashing at their house during the week though if the new tax ever becomes reality, because I can't afford to wrack up those kind of miles. I know, poor me :)

On the subject of hybrids, conspiracy theorists have said all along that the oil companies and gas tax proponents are what have kept more electric and alternative fuel cars off the roads. Who knows though. and with all the climate change stuff going on, SOMETHING is going to have to change, whether it's going to hybrids or mass transit. And rumor has it that the subject of light rail may be making a comeback in our area.

Unknown said...

Well I think they will need to find a way to tax the electric and plug in hybrids instead of using gas tax, but not eliminate the ga tax for gas powered vehicles.
STA is thinking how to use less fuel and may start woking on other plans to reduce their carbon footprint. Light rail would be one way, but at what cost?

Steve said...

SRTC Staff said the two taxes would probably run simultaneously, at least for a while. (Emphasis added)

Ah, the optimism of youth.

SRTC Staff said...

Hey, I'm trying to be positive here. I'm not allowed to reveal the REAL plan which is to attach new technology to gas pumps that will use suction to pull money right out of your wallet when you pull up to the gas pump.

So here's the catch 22 I keep running up against- I need a more fuel efficient car. I've looked into hybrids but can't afford the outright cost of one at this point. So either I suffer by buying one and skimping on things like food or health care, or the environment suffers by me continuing to drive a regular car. Where's the middle ground for us regular folks who want to do good but can't afford to? (and yes, I already ride the bus and walk or ride a bike whenever I can).


About SRTC

SRTC is the federally designated Metropolitan Planning Organization (MPO) for Spokane County. Urbanized areas with populations exceeding 50,000 people are required to have an MPO. SRTC was formed to address the county's transportation planning needs. It provides coordination in planning between the public, cities, small towns, the county, the state, transit providers, and tribes.

SRTC offers services including transportation monitoring, transportation modeling, census information analysis, travel demand forecasting, historical traffic count analysis, geographic information systems, and trip generation rates.