Many experts think vehicle miles traveled fee is inevitable

Gas tax no longer sustainable?

Steve Hawley, Feb 10, 10.

The United States may implement a vehicle miles fee within a few years to pay for transportation projects, according to the Washington Post.

According to the article, many transportation experts believe a transition from a fuel tax to a vehicle miles fee is inevitable. It notes:

The flow of the gas tax pipeline that has poured cash into one of the world’s premier highway systems has slowed as some people drive less and others choose more fuel-efficient vehicles. Maintaining that aging network and tackling the rush-hour congestion afflicting most cities will require billions of dollars. As gas tax revenue dwindles, federal and state lawmakers have an option created by innovative new technology: charge the nation’s 201 million drivers for every mile they travel.

That prospect was raised last year by a congressional commission, a Brookings Institution report and a highly regarded nonpartisan transportation research group.

In 2008, then-U.S. Transportation Secretary Mary E. Peters warned a Senate subcommittee that the “fuel tax is unsustainable in the future.”

However, the article reports that it may be harder to gain public acceptance of a vehicle miles fee. Some drivers fear the technology - which would most likely involve the use of GPS locators on every car - would invade their privacy, while others view it as another unnecessary tax.

The federal gas tax has been set at 18.4 cents per gallon since 1993, while states also charge anywhere between 8 cents and 46.6 cents. The gas tax is not indexed to inflation. The average American pays 46.9 cents in taxes per gallon of gas, according to the Post.

The article states that if gas consumption drops 20 percent by 2017, as proposed by President George W. Bush, gas tax revenues could fall even further as more people switch to electric and hybrid cars. One study estimates that hybrids will account for 30 percent of all car sales within two years and 75 percent of all sales within 15 years.

Last year, Congress had to approve a $7 billion patch to prevent the Highway Trust Fund - which is financed by the gas tax - from running out of money a month and a half early. At the same time, many of the country’s roads are at least 40 or 50 years old and in need of serious repairs. Earlier in the year, US Rep. James Oberstar, who chairs the House Transportation Committee, proposed adding a vehicle miles fee to the upcoming federal transportation bill.

Congress is expected to pass a new transportation bill by the end of the year, although it is unclear that the bill would actually include a vehicle miles fee. Separately, the Texas Department of Transportation has commissioned a study regarding the feasibility of a statewide vehicle miles traveled fee.

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