Gas Tax Alternative Mileage Charge Makes Serious Movement

Tom Warne Report, 23 January 2013

gridChicago.com – January 15, 2013

A new report by a congressional think tank has influenced a big step forward in the country’s consideration of switching to a fee that more accurately charges drivers for roadway usage. The study by the Government Accountability Office, which focuses on financing past, present and future, was commissioned by the House Transportation Appropriations Subcommittee.

The gas tax is becoming less and less effective due to fuel efficient vehicles, less driving and insufficient increases to keep up with all the Congressionally mandated projects. The Simpson-Bowles Commission, summoned by President Obama to find strategies to improve the country’s fiscal outlook in 2010, “called for an immediate 15 cent-per-gallon increase in the gas tax.”

The GAO report endorses a mileage fee as an alternative to the gas tax, which could be charged by way of a pay-at-the-pump (or electric vehicle charging station), or prepaid, a method of self-reporting based on odometer readings.

The report states: “Mileage-based user fee initiatives in the United State and abroad show that such fees can lead to more equitable and efficient use of roadways by charging drivers based on their actual road use and by providing pricing incentives to reduce road use.” To read more on the General Accountability Office Report, visit Streetsblog Capitol Hill.

A long road lies ahead for full implementation of a mileage based fee system to replace the motor fuels tax. That’s not to say that steps shouldn’t be taken to move in that direction. However, the conversion will not happen for a decade or more from now given the need to navigate political, emotional and operational hurdles. While this and many other transportation policy and funding issues are important to us in the industry they pale in significance to the weightier matters facing our nation. Keeping a perspective and reality about the Washington agenda is important. TW

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