Goodbye, Gas Tax? Several States Consider Taxing Drivers by the Mile
Several states are considering trading in the old gasoline tax for a new and improved pay-as-you-drive tax, which would charge motorists taxes by the mile.
The government’s push toward electric vehicles has taken a toll in recent years. As fewer drivers pay gasoline taxes charged at the pump, some states are inclined to compensate for lost revenue by implementing a new “road usage” system that would tax drivers by the mile, penalizing commuters and hurting an already suffering economy.
“According to Boston-based CDM Smith, there could be a $67 billion tax deficiency for transportation by 2050 if states fail to figure out how to increase revenue,” the Post Millennial reported.
The gasoline tax is largely allocated towards road maintenance and highway safety within states, however, the thousands of electric vehicle owners in each state have been able to avoid paying their fare share for road upkeep — until recently. A new law in Texas created a $400 initial registration fee for electric vehicles, which lasts for two years, and a subsequent $200 annual fee for electric vehicles registered in the state.
“It costs the average gas-powered car owner $50 to $54 in the state of Texas to register their vehicle annually. The hefty prices are not meant to drive electric vehicle owners away, but rather to make up for lost revenue which would have been collected on the gas tax, and allocated to the state to maintain the roads.”
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Not every state is taking such a clever approach to this issue, however. Oregon, Virginia, and Utah have already implemented a road-usage tax.
In Utah, only electric vehicles are eligible for the program at this time, and drivers are taxed 1.00 cents each mile. Virginia’s Mileage Choice Program is voluntary for all drivers who pay a highway use fee upon vehicle registration. “Instead of paying the highway use fee at the time of registration renewal,” the website reads, drivers can “opt to participate in the Mileage Choice Program instead” and pay fees on a “per-mile basis.”
Washington state ran a pilot program with a 2.4 cents mock charge per mile that was used to “help decision makers learn whether and how a concept might work in Washington.”
On the national scale, a similar pilot program, funded by the $125 million federal infrastructure package President Biden signed in 2021, is expected to take off soon as well.
Several prominent politicians and climate activists have made it a goal to reach net zero carbon emissions by the year 2030, but have declined to give U.S. infastructure the time necessary to make such adjustments. Several European countries leaped ahead of what their “clean” energy sources were capable of providing and placed themselves in a desperate predicament over the past year, relying on countries like Nigeria, Qatar, Norway, Algeria, others for their necessary energy supply.
The climate craze has and likely will continue to fuel the electric vehicle frenzy. hold on to your wallets, America.
