1. Attachments are working again! Check out this thread for more details and to report any other bugs.

1.5 cents per mile instead of gasoline tax

Discussion in 'Prius, Hybrid, EV and Alt-Fuel News' started by bwilson4web, May 21, 2015.

  1. bwilson4web

    bwilson4web BMW i3 and Model 3

    Joined:
    Nov 25, 2005
    27,152
    15,407
    0
    Location:
    Huntsville AL
    Vehicle:
    2018 Tesla Model 3
    Model:
    Prime Plus
    Source: Oregon Taxing EVs, Hybrids for Road Use | TheDetroitBureau.com

    The state is enacting a plan called OreGo, where it charges drivers by how many miles they drive rather than collecting taxes on gasoline, which is the conventional method for getting the funding. The idea is helping to raise revenue because as cars are getting better gas mileage and some aren’t using any gas at all, tax revenues are dwindling.

    The $8.4 million program could be the model for other states, like Michigan, struggling to find ways to maintain and upgrade sagging infrastructure as tax revenues continue to fall.

    Starting July 1, 5,000 volunteers can sign up to drive using electronic devices that track how many miles they drive. They will pay 1.5 cents per mile to travel on public roads in the state instead of paying the gasoline-based tax.
    . . .

    Sounds like a great plan for someone with a 10 MPG vehicle.

    Bob Wilson
     
    walter Lee and Tracksyde like this.
  2. telmo744

    telmo744 HSD fanatic

    Joined:
    Apr 8, 2010
    2,169
    764
    0
    Location:
    Portugal
    Vehicle:
    2010 Prius
    Model:
    N/A
    Taxing fuels has produced good results in Europe concerning consumption and driving habits.
    Taxing miles driven will change driving habits, but little in individual vehicle consumption selection trends o_O And giving less importance to the greener cars. :cry:
     
    giora and yibo829 like this.
  3. bwilson4web

    bwilson4web BMW i3 and Model 3

    Joined:
    Nov 25, 2005
    27,152
    15,407
    0
    Location:
    Huntsville AL
    Vehicle:
    2018 Tesla Model 3
    Model:
    Prime Plus
    Here is another source: Oregon to test pay-per-mile idea as replacement for gas tax - KATV - Breaking News, Weather and Razorback Sports

    While growing in popularity, electric vehicles and hybrids are still in the minority on American roads, even in a state as green-minded as Oregon. Of 3.3 million passenger cars registered in Oregon at the end of 2014, about 68,000 were hybrid, 3,500 electric and 620 plug-in hybrid. A decade ago, only 8,000 hybrids were registered.

    However, fuel-economy for gas-powered vehicles has been increasing as technology is developed that addresses public concerns about greenhouse gas emissions and dependence on foreign oil.

    Oregon is the only state to actually test-drive the pay-per-mile idea.

    I pulled the wrong fuse earlier this week and my Scangauge II stopped working. The OBD interface is fused.

    Oregon's share of the fuel tax over the past two decades has been mostly flat and in some years declined, state data show. In 2009, the Legislature raised the tax from 24 cents to 30 cents per gallon, but that's not enough to avert shortfalls, state officials said, because construction costs increase with inflation.

    Oregon previously held two rounds of small-scale tests involving GPS devices to track mileage.

    The current program, called OreGo, will be the largest yet and will be open to all car types. Of these, no more than 1,500 participating vehicles can get less than 17 miles per gallon, and no more than 1,500 must get at least 17 miles per gallon and less than 22 miles per gallon.

    It also has provisions for the more paranoid:

    After the American Civil Liberties Union of Oregon raised concerns about privacy and government surveillance, the state built protections into the program, said ACLU's interim executive director Jann Carson.

    Drivers will be able to install an odometer device without GPS tracking.

    For those who use the GPS, the state and private vendors will destroy records of location and daily metered use after 30 days. The program also limits how the data can be aggregated and shared. Law enforcement, for example, won't be able to access the information unless a judge says it's needed.

    "This is the government collecting massive amounts of data and we want to ensure the government doesn't keep and use that data for other purposes," Carson said.

    The OreGo program is projected to cost $8.4 million to implement and is aimed to gauge public acceptance of the idea of charging motorists per mile of road they travel. It will be up to the Legislature to decide whether to adopt a mandatory road usage charge.

    Ok, now we can figure it out:
    • $8,400,000 / $0.015 ~= 5,600,000,000 miles to beak even on this 'test'
      • 1,500 vehicles @17 MPG ($0.30/gal tax ~= $0.0175 gas tax/mile)
      • 1,500 vehicles @22 MPG ($0.30/gal tax ~= $0.0137 gas tax/mile)
    • 5,600,000,000 / 5,000 ~= 1,120,000 miles per vehicle before a single penny for roads
    Off hand, they'll have to reduce the cost by two orders of magnitude, 11,200 miles per vehicle. which has to be paid first. Any vehicle getting worst than 20 MPG is being subsidized by the rest.

    Bob Wilson
     
    #3 bwilson4web, May 21, 2015
    Last edited: May 21, 2015
    walter Lee and TonyPSchaefer like this.
  4. wjtracy

    wjtracy Senior Member

    Joined:
    Sep 19, 2006
    11,314
    3,588
    1
    Location:
    Northern VA (NoVA)
    Vehicle:
    Other Hybrid
    Model:
    N/A
    Georgia is planning to charge BEV's $200/yr for gaso tax (which seems too high). Couple other states VA, WA charge extra $100 or so for BEV.

    Not sure what Georgia is thinking, but probably they are taking 15000 miles/year and assuming average car 25 MPG with 36 cents/gal (planned total state + local gaso taxes) so that's $200. That's similar $ per mile to Oregon.
     
    #4 wjtracy, May 21, 2015
    Last edited: May 21, 2015
  5. bisco

    bisco cookie crumbler

    Joined:
    May 11, 2005
    107,796
    48,995
    0
    Location:
    boston
    Vehicle:
    2012 Prius Plug-in
    Model:
    Plug-in Base
    they should tax by vehicle weight.
     
  6. ETC(SS)

    ETC(SS) The OTHER One Percenter.....

    Joined:
    Oct 28, 2010
    7,674
    6,495
    0
    Location:
    Redneck Riviera (Gulf South)
    Vehicle:
    Other Non-Hybrid
    Model:
    N/A
    Actually a per-mile tax is exceedingly fair, and super simple to implement.
    Odometer readings are already reported as a matter of practice for the various states that license vehicles, and it's already against the law to tamper with the readings.
    No privacy issues exist where they're not already being raised by licensing and registration processes.
    Add to this, there is already an infrastructure in place to verify odometer accuracies - and while it's certainly not immune from tinkering and tampering, it's at least as efficient as anything that any government will ever come up with.
    Poor people do not have to pay a higher percentage of their transportation budget for fuel while they wait for trickle-down technology to make greener cars more affordable, or default to mass transit.
    Of course all of this means that it's doomed to fail, since government bureaucrats utterly despise simple, PAYGO systems that they cannot manipulate, and one percenters cannot game the system by getting carve-outs for eco-chic vehicles.

    Common sense: fail.
     
    Trollbait likes this.
  7. bisco

    bisco cookie crumbler

    Joined:
    May 11, 2005
    107,796
    48,995
    0
    Location:
    boston
    Vehicle:
    2012 Prius Plug-in
    Model:
    Plug-in Base
    it's fair if the money is for road and bridge repair. since it's not, we're better off with increased gas tax.
     
  8. ETC(SS)

    ETC(SS) The OTHER One Percenter.....

    Joined:
    Oct 28, 2010
    7,674
    6,495
    0
    Location:
    Redneck Riviera (Gulf South)
    Vehicle:
    Other Non-Hybrid
    Model:
    N/A
    ^excellent point.
     
  9. Mendel Leisk

    Mendel Leisk Senior Member

    Joined:
    Oct 17, 2010
    54,723
    38,252
    80
    Location:
    Greater Vancouver, British Columbia, Canada
    Vehicle:
    2010 Prius
    Model:
    Touring
    Don't second gen Prius odometers stop at 300,000? :whistle:
     
  10. austingreen

    austingreen Senior Member

    Joined:
    Nov 3, 2009
    13,533
    4,063
    0
    Location:
    Austin, TX, USA
    Vehicle:
    2018 Tesla Model 3
    Model:
    N/A
    Georgia isn't doing badly here. First they give each bev $5000 of state money, then charge $200/year for roads, hoping those hating EVs will be satisfied. Say the car is on the road 10 years, you could offer $4000 off the car, and $100/year, but that would not encourage as many cars, and the $100 would anger those driving guzzlers that bevs aren't paying their fair share.

    This oregon plan is the camels nose under the tent. Its trying to get people used to the plan and pretend it costs less, but this is how it will actually work.

    Car owner pays road tax by fuel A it averages B per car.

    Or car Owner pays for gps device X, plus people to analyze gps device Y, plus road taxes which average B.
    So the car owner now has increased his average cost by X + Y for the same roads, and given up a little of his freedom in the interests of what the politicians call fairness. Now this fairness is to tax guzzlers less, so in the interest of fairness not only will the average car be taxed more per mile, but we have probably burned more gasoline as it has encouraged fewer vmt but in less efficient vehicles.

    What do the politicians get out of this? Well their buddy sells the government improved device, so their buddy's company makes a big proffit. This tax is more complicated to monitor and collect, so they get a bigger budget for computers and to hire more people to grow government.

    What do the people get out of it? More economic risk from higher oil use. Bigger and less efficient government.

    Oregon. Please look at the pluses and minuses and don't pretend the data won't be used against us. When red light camera's went in my town it was to make it more safe, not to ticket. 4 years later they started issuing tickets against their promises. What is really going to stop government from abusing the gps data?

    If that were the oregon plan, then there would not be civil liberties or tax cost problems, but it is not.
    They only want to tax in state mileage. You still will pay federal gas tax. They therefore need a new device (gps) and a new set of people reading them, as these are special gps's for the tax.

    Odometer readings where annual inspections are required are not onerous. This also solves one of the pollution problems with classic cars. The claim is old cars get exempt because they don't run very much, this can be enforced on odometer readings.

    First we have a very easy and hard for government to tamper with gas tax. It is collected by the gas stations that can do it as easy as sales tax, so no undo burden. There is very little cheating. The problem is the tax did not get gauged to road construction inflation and lower total gas used.

    Now a PAYGO system would require at a minimum all those places without anual inspections add them, which is a cost. Then you need a mechenism for states to share, not that big of a deal, but ..... It still would have to raise the tax, just like the gas tax, as people drive less and road construction costs go up. In other words it doesn't really solve a problem. At less than 1% of the cars pluging in, and many of those using gas, most drivers of efficient cars would end up paying more. Worse you get those taxes all at once 1 time a year.

    So for Oregon the average car gets 25 mpg and pays $0.48/gallon state and federal. That is $0.0192/mile. A 50 mpg car pays half that today, oh how unfair. Say they go 15000 miles per year, you pay $288, and don't feel it at all when filling up.

    Now that 18 mpg car that likes the rule, pays at the pump $0.48 less on every one of those 833 gallons you would need if you drove 15,000 miles in a year. On ten gallons you could only go 180 miles, so it kind of hurt that extra $4.80 of taxes each tank, but now its less and only once a year. That may encourage that 18 mpg driver to drive more.
     
    #10 austingreen, May 21, 2015
    Last edited by a moderator: Aug 11, 2015
    HybridBull likes this.
  11. ITgem679

    ITgem679 Junior Member

    Joined:
    Apr 10, 2015
    73
    17
    0
    Location:
    California
    Vehicle:
    2012 Prius
    Model:
    Two
    I believe that this is very unfair to the Hybrid and EV drivers. The wear on roads are caused by weather changes and the weight of the vehicle on the road. To tax for any other reason other than to maintain said roads is dishonest. I feel that if the state charges based on weight of vehicle, they would have a more balanced income per damage caused to the roads. Gas taxes are terrible, but driving taxes punish those that are trying to do better for themselves financially, care about the environment, and those that are tired of feeding the fat cats in the oil industry.
     
    HybridBull and telmo744 like this.
  12. ETC(SS)

    ETC(SS) The OTHER One Percenter.....

    Joined:
    Oct 28, 2010
    7,674
    6,495
    0
    Location:
    Redneck Riviera (Gulf South)
    Vehicle:
    Other Non-Hybrid
    Model:
    N/A
    Many hybrid and EV drivers think this.
    Poorer people who cannot afford newer more efficient vehicles think a little differently.
    In the end...a road use tax should be a road use tax.
    BEVs and PHEVs already get tax breaks, which I have no problem with since we already know that trickle-down technology works.

    I wouldn't lay awake and worry about it.
    The government will not implement a system that they cannot award favors and carve-outs in. ;)

    Another excellent point.
    And yet another group of self-entitled rich vehicle owners who will demand that an exception be made for them.
     
    #12 ETC(SS), May 21, 2015
    Last edited by a moderator: Aug 11, 2015
    frodoz737 likes this.
  13. ITgem679

    ITgem679 Junior Member

    Joined:
    Apr 10, 2015
    73
    17
    0
    Location:
    California
    Vehicle:
    2012 Prius
    Model:
    Two
    I don't and have not gotten any tax breaks for my Prius. I don't believe our gov't is really out to help us in these matters, but merely to find other ways to have us pay for things that are being mismanaged.
     
    HybridBull likes this.
  14. Trollbait

    Trollbait It's a D&D thing

    Joined:
    Feb 7, 2006
    21,750
    11,328
    0
    Location:
    eastern Pennsylvania
    Vehicle:
    Other Non-Hybrid
    The gas tax really isn't for road repair. It just hasn't been adjusted with the times, so it collects less than the repairs cost.

    Per mile is the simplest and fairest, specially with the possibility of truly alternate fuels like electric, CNG, or hydrogen.

    The is no need for some monitoring device as ETC(SS) pointed out. Odometers all ready are regularly read. A state might have to hire some more employees for that purpose, but it likely works out better than buying all those devices. Unless the company making them is a big donor.
     
    Zythryn and bwilson4web like this.
  15. ITgem679

    ITgem679 Junior Member

    Joined:
    Apr 10, 2015
    73
    17
    0
    Location:
    California
    Vehicle:
    2012 Prius
    Model:
    Two
    Having an indepth knowledge of, and working with technology, I really would be concerned about the "effectiveness" of the calculation ability of any electronic devices. A mile is a mile, but if the device is designed to shave off 1/20th of a mile per vehicle from it's calculation - something no one might notice...or worse, 1/10th - what's stopping us from each of us being taxed more than $30 per month from an incorrect calculation device? This may not seem like a lot to people - and maybe it isn't - but when I spend $35 per fill up 1x per week (I drive around some in my Prius for work, varied days) which comes to about $140/month in gas that I pay for, $30 of my $140 a month I buy gas, comes out to a 21.43% tax per month.

    Also, I haven't read that the gas taxes would be removed, so I'm assuming I'm still paying those at the pump as well. So, therefore, we're being hit twice.
     
  16. San_Carlos_Jeff

    San_Carlos_Jeff Active Member

    Joined:
    Oct 4, 2005
    871
    160
    0
    Location:
    Northern California
    Vehicle:
    2012 Chevy Volt
    Model:
    N/A
    That's what I was thinking as well. If the supposed purpose of the tax is for road creation and maintenance then the tax should be based on distance traveled and vehicle weight. All that information is available or in the case of custom cars could be obtained with a scale at the DMV when cars are registered.
     
    Zythryn likes this.
  17. wjtracy

    wjtracy Senior Member

    Joined:
    Sep 19, 2006
    11,314
    3,588
    1
    Location:
    Northern VA (NoVA)
    Vehicle:
    Other Hybrid
    Model:
    N/A
    In case you missed the big news, Georgia is stopping the $5000 BEV incentive and going with +$200 road tax.

    In case that loss of GA incentive is depresssing, the good news is Oregon liked the Georgia incentive and proposes to add $3000 incentive for BEV incentive (which is huge considering there is no sales tax in OR). $1500 for PHEV (not sure if PiP qualifies),
     
  18. JimN

    JimN Let the games begin!

    Joined:
    Nov 26, 2006
    7,028
    1,116
    0
    Location:
    South Jersey
    Vehicle:
    2010 Prius
    Model:
    V
    Tesla's Model S is over two tons of fun. In NJ it is in the same weight class as SUVs and costs more to register than my Prius.

    In the NJ & NY a certain organization figured out how to sell gasoline, collect the taxes, then not forward the collected tax to the government. This was one reason why gas station ownership changed every year.
     
  19. austingreen

    austingreen Senior Member

    Joined:
    Nov 3, 2009
    13,533
    4,063
    0
    Location:
    Austin, TX, USA
    Vehicle:
    2018 Tesla Model 3
    Model:
    N/A
    I knew some wanted it gone, but not that it was killed. I thought the legislature still had it. What is the date that it will end.
     
  20. Trollbait

    Trollbait It's a D&D thing

    Joined:
    Feb 7, 2006
    21,750
    11,328
    0
    Location:
    eastern Pennsylvania
    Vehicle:
    Other Non-Hybrid
    I'm sure the actual info is out there, but I don't think the weight difference between personal vehicles is enough to have a measurable impact on road wear between them. The real difference doesn't show up until you get to heavy trucks.
    I suspect that has more with it being a Tesla than actual weight. My Ranger cost more to register in Pa, and I understand that was so in NJ. Because it was a truck; that was lighter than many cars. A friend has a Tahoe that ocassionally pulls a two horse trailer. The registration fee is the same as a car, because the state calls it a station wagon.