VMT – tax of the future?

Oregon has become the first state to institute a VMT (vehicle miles traveled) tax as a means to get away from the gas tax. It is voluntary at this point but some say this could eventually replace the state gas tax.

In the VMT system in Oregon you will pay 1.5 cents per mile and won’t have to pay the state’s 30 cent per gallon gas tax. But you will still have to pay the 18.4 cent federal gas tax.

There are privacy concerns that go along with the state monitoring your mileage and VMT systems don’t incentivize the use of more fuel-efficient cars.

But it will be interesting to see how this works out in Oregon. It may be coming to your state in the future.

Jan

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