Oregon among Several States Seeking Alternatives to Fuel Tax

Tom Warne Report, 27 August 2013

Land Line Magazine – August 19, 2013

A new law in Oregon is designed to get drivers to try out a per-mile road tax as legislators across the nation are encouraging federal officials to help fund similar efforts.

The National Conference of State Legislators is hoping the federal government will establish a $20 million fund to assist states in studying fuel tax alternatives to pay for road and bridge work.

At the NCSL’s conference in Atlanta, lawmakers adopted a resolution to allot $2 million to states in support of state-level pilot programs that develop options to replace the excise tax. Oregon State Sen. Bruce Starr, R-Hillsboro, introduced the measure.

Starr said that “revenues for our transportation system continue to decline with vehicles becoming more fuel efficient and changing travel patterns nationwide.” He said this has resulted in a funding gap of nearly $94 billion annually based on current spending levels. Starr participated in the newly signed law by Oregon Gov. John Kitzhaber that implements a vehicle miles traveled fee for motorists. The fee will start with volunteers in 2015, charging drivers a mileage tax rate of 1.5 cents per mile.

Meanwhile in Nevada, transportation officials are working on a study on road funding options that also involves a vehicle miles traveled tax. Gov. Brian Sandoval is hoping to have the study completed for the 2015 regular session.

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