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System would tax drivers by mileage
By Sarah Linn
ASSOCIATED PRESS
CORVALLIS, Ore. – Drivers who rack up the miles would pay more at the pump, instead of paying a per-gallon gas tax, under a system being developed at an Oregon university.
Engineers at Oregon State University are working on a pair of devices that measure the number of miles driven between pit stops, then factor in a mileage-based fee at the gas station.
State and federal officials hope that the system, which combines wireless Global Positioning System and odometer technology with shortwave radios, will transform how states tax road use.
"No other state is doing a test like this," said David Cox, Oregon administrator for the Federal Highway Administration. The federal agency has contributed about $900,000 of the $1.9 million project. State transportation funds make up the rest.
As gas prices rise, many consumers are turning to more fuel-efficient cars and gas-electric hybrids to cut costs. That means states are losing valuable road revenue, said James Whitty, a manager at the Oregon Department of Transportation.
A mileage-based tax would ensure that those drivers pay for road maintenance, he said, ultimately replacing the fuel tax.
Oregon's fuel tax provides 68 percent of the revenue of the state highway fund, which pays for road maintenance and construction, Whitty said.
The first device, located on the vehicle, monitors how many miles the driver travels before refueling. One version acts like an odometer. The other version relies on GPS satellites to pinpoint the vehicle's location within a certain zone – whether it's downtown or on the highway.
At the gas station, the vehicle's device sends a shortwave radio transmission to a device on the pump. The device tallies the per-mile tax and adds it to the price of gas, replacing a fuel tax.
It would cost roughly the same, Whitty said, about 0.125 cents per mile.
There are provisions to vary the rate based on the location or the time of day, such as evening rush hour on crowded roadways, said David Porter, the other Oregon State professor heading the project.
Some transportation officials hope to see the system go national.
California and Washington have expressed interest in the program, Cox said. And officials from 15 states recently met at the University of Minnesota to discuss the research.
The federal government doesn't plan to mandate such a system, Cox said, so the states must persuade vehicle manufacturers to install the devices in new cars and trucks.
"It's a hard thing for a tiny little state with 1 percent of the market to pull off (alone)," Whitty said of Oregon.
The system would apply to lightweight, personal vehicles, Cox said. Most commercial vehicles pay a tax based on vehicle weight and miles traveled, to cover road wear and tear.
Although the mileage tax system makes no distinction between a small car and a bulkier sport utility vehicle, transportation officials said it's fair to charge an equal rate for miles driven.
"The price of gas is enough to be a disincentive to owning and driving an SUV," Cox said.
State lawmakers are reluctant to approve the system, noting it'll be years before the devices are ready for production and implementation. The project is scheduled to end in 2007.
"In the long run, we're going to need a replacement for the fuel tax," said state Sen. Bruce Starr, a Republican. "Is this the right answer? I'm not sure yet. But it's one of the solutions we're considering."
By Sarah Linn
ASSOCIATED PRESS
CORVALLIS, Ore. – Drivers who rack up the miles would pay more at the pump, instead of paying a per-gallon gas tax, under a system being developed at an Oregon university.
Engineers at Oregon State University are working on a pair of devices that measure the number of miles driven between pit stops, then factor in a mileage-based fee at the gas station.
State and federal officials hope that the system, which combines wireless Global Positioning System and odometer technology with shortwave radios, will transform how states tax road use.
"No other state is doing a test like this," said David Cox, Oregon administrator for the Federal Highway Administration. The federal agency has contributed about $900,000 of the $1.9 million project. State transportation funds make up the rest.
As gas prices rise, many consumers are turning to more fuel-efficient cars and gas-electric hybrids to cut costs. That means states are losing valuable road revenue, said James Whitty, a manager at the Oregon Department of Transportation.
A mileage-based tax would ensure that those drivers pay for road maintenance, he said, ultimately replacing the fuel tax.
Oregon's fuel tax provides 68 percent of the revenue of the state highway fund, which pays for road maintenance and construction, Whitty said.
The first device, located on the vehicle, monitors how many miles the driver travels before refueling. One version acts like an odometer. The other version relies on GPS satellites to pinpoint the vehicle's location within a certain zone – whether it's downtown or on the highway.
At the gas station, the vehicle's device sends a shortwave radio transmission to a device on the pump. The device tallies the per-mile tax and adds it to the price of gas, replacing a fuel tax.
It would cost roughly the same, Whitty said, about 0.125 cents per mile.
There are provisions to vary the rate based on the location or the time of day, such as evening rush hour on crowded roadways, said David Porter, the other Oregon State professor heading the project.
Some transportation officials hope to see the system go national.
California and Washington have expressed interest in the program, Cox said. And officials from 15 states recently met at the University of Minnesota to discuss the research.
The federal government doesn't plan to mandate such a system, Cox said, so the states must persuade vehicle manufacturers to install the devices in new cars and trucks.
"It's a hard thing for a tiny little state with 1 percent of the market to pull off (alone)," Whitty said of Oregon.
The system would apply to lightweight, personal vehicles, Cox said. Most commercial vehicles pay a tax based on vehicle weight and miles traveled, to cover road wear and tear.
Although the mileage tax system makes no distinction between a small car and a bulkier sport utility vehicle, transportation officials said it's fair to charge an equal rate for miles driven.
"The price of gas is enough to be a disincentive to owning and driving an SUV," Cox said.
State lawmakers are reluctant to approve the system, noting it'll be years before the devices are ready for production and implementation. The project is scheduled to end in 2007.
"In the long run, we're going to need a replacement for the fuel tax," said state Sen. Bruce Starr, a Republican. "Is this the right answer? I'm not sure yet. But it's one of the solutions we're considering."
