Vehicle miles traveled tax
Encyclopedia
Vehicle Miles Traveled Tax is a policy proposed in the United States
of taxing motorists based on how many miles they have traveled. It has been proposed as an infrastructure funding mechanism that would eventually replace the fuel tax
.
units inside every vehicle that would record distance and charge motorists accordingly. VMT charges could also be expanded to charge motorists based on vehicle class, when they drive, where they drive, and the type road surface they drive on. Such a VMT tax would be identical to TDP Road Pricing
.
In recent years, fuel tax revenues have declined significantly as a result of less driving and increasing fuel efficiency. The fuel tax is no-longer seen as a sustainable way of financing road infrastructure. In 2008, the Federal Highway Trust Fund needed an $8 billion infusion from Congress. A similar infusion is expected for 2009. This is increasing pressure on transportation policy makers to search for new, viable road financing mechanisms.
On February 20, 2009, US Secretary of Transportation Ray LaHood
stated that VMT was an idea "that should be looked at". However, in response to Lahood's remarks, Press Secretary Robert Gibbs said that VMT "will not be Obama administration policy."
On February 26, 2009, the National Surface Transportation Infrastructure Financing Commission released its final report, recommending VMT as a means of financing road infrastructure that would eventually replace the fuel tax.
In June, 2009, ITS Institute (RITA), Minnesota Department of Transportation published a research report, "Technology Enabling Near-Term Nationwide Implementation of Distance Based Road User Fees."
In March 2011, The United States Congressional Budget Office issued a report comparing the relative merits of fuel taxes, vehicle excise taxes, vehicle tire excise taxes, and a hypothetical vehicle miles traveled tax. It emphasized the disproportionate road wear of cargo trucks versus the current tax rate paid, but noted that costs assessed to this sector would be passed along to the consumer. Also noteworthy was a chart indicating that the excise tax on tires could provide motivation to vehicle owners to reduce many external costs of vehicle travel and road maintenance, but it is currently set far too low to have much effect. The report noted that a GPS-based tax would have a unique trait in allowing taxes to be increased in high congestion zones where tolls are not practical, with the caveat that advances in toll collection technology would mitigate this advantage. The report also emphasized that both tire taxes and vehicle mile traveled taxes would have to be rated based on weight-per-axle to properly distribute wear-related costs of highway use.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
of taxing motorists based on how many miles they have traveled. It has been proposed as an infrastructure funding mechanism that would eventually replace the fuel tax
Fuel tax
A fuel tax is an excise tax imposed on the sale of fuel. In most countries the fuel tax is imposed on fuels which are intended for transportation...
.
Overview
Instead of using a tax on fuel consumption as a way of financing road infrastructure, a VMT tax would charge motorists based on their road consumption by measuring their mileage. VMT could be implemented via the use of GPSGlobal Positioning System
The Global Positioning System is a space-based global navigation satellite system that provides location and time information in all weather, anywhere on or near the Earth, where there is an unobstructed line of sight to four or more GPS satellites...
units inside every vehicle that would record distance and charge motorists accordingly. VMT charges could also be expanded to charge motorists based on vehicle class, when they drive, where they drive, and the type road surface they drive on. Such a VMT tax would be identical to TDP Road Pricing
GNSS Road Pricing
GNSS road pricing or GNSS tolling is the charging of road users using Global Navigation Satellite System sensors inside vehicles. Advocates argue that road pricing using GNSS permits a number of policies such as tolling by distance on urban roads and can be used for many other applications in...
.
In recent years, fuel tax revenues have declined significantly as a result of less driving and increasing fuel efficiency. The fuel tax is no-longer seen as a sustainable way of financing road infrastructure. In 2008, the Federal Highway Trust Fund needed an $8 billion infusion from Congress. A similar infusion is expected for 2009. This is increasing pressure on transportation policy makers to search for new, viable road financing mechanisms.
Recent developments
In 2007, Oregon conducted a VMT tax pilot project and found that the concept was 'feasible'.On February 20, 2009, US Secretary of Transportation Ray LaHood
Ray LaHood
Raymond H. "Ray" LaHood is a Republican politician from Illinois who is currently the United States Secretary of Transportation, having served since 2009. Previously, he represented the Illinois's 18th congressional district in the U.S. House of Representatives for seven terms .-Early life and...
stated that VMT was an idea "that should be looked at". However, in response to Lahood's remarks, Press Secretary Robert Gibbs said that VMT "will not be Obama administration policy."
On February 26, 2009, the National Surface Transportation Infrastructure Financing Commission released its final report, recommending VMT as a means of financing road infrastructure that would eventually replace the fuel tax.
In June, 2009, ITS Institute (RITA), Minnesota Department of Transportation published a research report, "Technology Enabling Near-Term Nationwide Implementation of Distance Based Road User Fees."
In March 2011, The United States Congressional Budget Office issued a report comparing the relative merits of fuel taxes, vehicle excise taxes, vehicle tire excise taxes, and a hypothetical vehicle miles traveled tax. It emphasized the disproportionate road wear of cargo trucks versus the current tax rate paid, but noted that costs assessed to this sector would be passed along to the consumer. Also noteworthy was a chart indicating that the excise tax on tires could provide motivation to vehicle owners to reduce many external costs of vehicle travel and road maintenance, but it is currently set far too low to have much effect. The report noted that a GPS-based tax would have a unique trait in allowing taxes to be increased in high congestion zones where tolls are not practical, with the caveat that advances in toll collection technology would mitigate this advantage. The report also emphasized that both tire taxes and vehicle mile traveled taxes would have to be rated based on weight-per-axle to properly distribute wear-related costs of highway use.