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Are You Ready to be Taxed on The Miles Your Drive?

Kevork Djansezian, Getty Images

There was a story aired on KHQA Wednesday night regarding the potential to have a tax levied on the amount of miles you drive.  The state of Oregon drivers, according to an article in a recent USA Today newspaper, could get a taste of what the future may hold for the rest of us. They will pay taxes not on the amount of gasoline their cars burn, but on the number of miles they drive. The new program would start in 2015 using only volunteers. You can bet transportation experts and elected officials all over the country will be interested in seeing if this project works in Oregon.

The main reason for this is that the cars of today are much more fuel efficient and as a result we are consuming less fuel.  Therefore, the states are getting less tax money as a result. This would become more dramatic by the year 2025.  That’s when the government’s efficiency goal for vehicles is set for 54.5 miles per gallon. If that happens, you can see how states will be hurt tax wise.

Here is how it is set to work in Oregon. The volunteers would still pay gas taxes at the pump. The state would compute how much money drivers paid in gas taxes and subtract that from the amount they owe in mileage taxes. The state would then send a bill for the difference. The mileage would be computed thru a device connected to your odometer.

I can see all kinds of problems with this plan.  How about you?

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