Netherlands tries VMT tax

Vehicle miles traveled

Jay Blazek Crossley, Aug 16, 11.

The Netherlands has conducted a trial implementation of a Vehicle Miles Traveled (VMT) tax that factors in the full costs of driving, including environmental costs, according to the New York Times:

As Sander Van Dedem recalled watching the charges tick up every 10 seconds on the dashboard meter on the way to the airport, he resolved to try public transportation next time. “Looking at the money makes you realize that a car isn’t always a good idea,” said Mr. Van Dedem, a commercial sales manager for I.B.M. here.

But his pricey ride was not in a taxi. He was driving his own Volvo XC60.

The car had been outfitted with the meter so that Mr. Van Dedem could take part in a trial of a controversial government tax proposal to charge drivers a fee for the miles they drive. The meter also factors in the cost to society in the form of pollution, traffic congestion, greenhouse gas emissions, and wear and tear on roads.

Hooked up to the Internet wirelessly and to GPS, the system tabulates a charge for each car trip by using a mileage-based formula that also takes account of a car’s fuel efficiency, the time of day and the route. (Driving on busier thoroughfares costs more than driving on less-traveled roads.) At the end of each month, the vehicle’s owner would receive a bill detailing times and costs of usage, not unlike a cellphone bill, although participants in the trial did not have to pay the charges.

The Texas Transportation Institute has conducted extensive research on the use of Vehicle Miles Fees, including ongoing testimony to the Texas Legislature considering the possibility for implementing such a tax. This research was requested by the Texas Transportation Commission in 2010 when gas tax projections showed that the Texas Department of Transportation would run out of funding for new projects by 2012 due to declining gas tax revenues.

Portland, Oregon implemented a trial of VMT tax in 2007, according to Portland Transport. The conclusion was that the concept was feasible, according to Wikipedia.

(Image credit: portlandtransport, flickr / cc)