Smart Technology
Drive More, Pay More?
You'll watch when and where you drive under a pay-by-the-mile plan.
By Joan Goldwasser, Senior Reporter
From Kiplinger's Personal Finance magazine, January 2008
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Carpool moms, exurban commuters and Sunday drivers, take note: You may soon pay more to drive, especially during rush hour. And a fuel-efficient car won't necessarily help.
Several states are testing high-tech alternatives to the gas tax you pay at the pump. These new systems, enabled by global-positioning technology, are based on the number of miles you drive and when you drive them.
In Portland, Ore., where a pilot program just ended, you might pay as much as nine times the current tax rate if you drive during rush hour. The idea is to make sure that motorists -- even those whose gas consumption wanes -- bear the cost of wear and tear on the nation's roads.
A huge national study run by the University of Iowa is ramping up in six metro areas. Thousands of drivers will continue to pay gas taxes at the pump, but they'll also get a simulated bill every month showing how much they would pay under a mileage-based system. At first, the bill will reflect only the amount due, based on miles driven. After a while, drivers will get more-detailed bills documenting their whereabouts.
Privacy concerns will doubtless make for battles royal as state legislatures try to balance the need to know with the need for tax revenues.
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Reader Comments (8)
Posted by: Cindy Schwalb at 01/10/2008 11:33:38 AM
Would you like Kiplinger.com to track this proposed transportation tax? Would you like Kiplinger.com to provide government Web resources for articles such as this one, so that you may act on proposed legislative changes before they are passed? Please share your thoughts. Thank you, Cindy Schwalb
Posted by: Russell Telles at 01/11/2008 05:20:10 PM
Sounds like big brother wanting more control of us...What a shame.
Posted by: Richard Chiodini at 01/12/2008 03:21:52 PM
Keep the government(s) out of out of our business if they need more money they should first clean house, their is plenty of money for roads and bridges and maintenance for the tax they collect for gas, oil & misc....
Posted by: Anthony at 01/15/2008 09:56:08 AM
It's a ridiculous idea. I do support higher gas taxes though, and a sliding registration renewal rate based on gross vehicle weight. Someone driving a 1.6l Honda shouldn't pay the same annual registration as a someone driving a 6.0l pickup. High gas tax equates to higher consumption tax. If we pay by the mile, regardless of the cars we drive then we'll just be rewarding those who use 6,000lbs + vehicles as daily drivers.
Posted by: Joe at 01/29/2008 09:27:45 PM
Another tax on the working man. American government is hurting its own people.
Posted by: Brian at 02/19/2008 01:19:33 PM
Terrible idea. So if I get the fortwo that takes up half as much space on the road, I'm taxed as much as a semi taking up to 5-6 times as much space on the roads. Not only that, but lawn mowers won't be taxed at all?
Posted by: Jen at 03/03/2008 01:08:05 PM
What a fantastic idea *sarcasm*! Instead of trying to trim their budgets and plan accordingly, cities and counties are trying to track our every motion to gain more in taxes. How about this idea -- instead of paying a sales tax on food, people should be forced to weigh themselves and receive a tax proportional to their weight. If you weight 300 lbs and you want to buy a Big Mac, you'll pay $100. This is just another sad example of what happens when you cross an ever-increasing nanny state mentality with greed.
Posted by: Matthew at 01/17/2009 10:22:08 PM
I agree with the general sentiment of all the comments posted thus far that this is a bad idea. Why would you want to do this when it is just as easy for a state to tax the gas itself. The more you drive, the more gas you will need, hence the more tax you will pay. We could add a tax for putting air in our tires also, NO just kidding, please do not take me seriously there. Matthew