Washington state plan to replace gas tax with a tax per mile.

[Chuckanut]

https://610kona.com/washington-state-drivers-the-pay-per-mile-tax-is-coming/

It looks like WA state will make a move in the direction of implementing a miles driven tax.

A few quotes:

“At their most recent meeting the Washington State Transportation Commission (WSTC) gave their official recommendation for a pay per mile tax or Road Usage Charge (RUC) What does this mean for you?”

“Travel on private roads, private farms with access roads, and out of State road ways can not be calculated in the tax. The WSTC has recommended a 2.5 cent per mile charge per vehicle.”

“That is where it gets interesting. The WSTC is asking the Legislature to authorize the RUC in this coming session so they can begin an opt-in program in 2025 before all drivers are moved to it in 2027. In the summer of 2025, if you have a vehicle that gets 25 mpg or more you can opt in, if you have a hybrid or EV you can opt in and have your fee waived.”

 

[PaunchyPirate]

The theory is sound. But I'd have to know how they plan on NOT charging me for the multiple trips between Florida and Pennsylvania and many out-of-state trips that I've been taking for the last several years. I bet >30% of the miles on my car are from out-of-state travels.

 

[MichaelB]

The thread title is a bit misleading. According to the article, the Washington State Transportation Commission has made a recommendation to implement a road usage charge or per mile tax.

 

[Chuckanut]

States plan to replace gas tax with a tax per mile.

The thread title is a bit misleading. According to the article, the Washington State Transportation Commission has made a recommendation to implement a road usage charge or per mile tax.

My understanding is that the study was done at the request of the state legislature. They want this to happen, IMO.

Miles driven would be tracked via a GPS device in your car. The privacy aspects of this would be formidable I would think.

The gas tax could not be eliminated quickly because so many projects are bonded via payment from the gas tax. Will there be a dollar for dollar reduction in gas tax collected for each dollar of new revenue? Then there are the privacy issues. Will a person’s travel data be private and secure? How can the public be assured of that?

Lots of items to discuss.

 

[HarveyS]

Maybe I missed it.... I did not see in the article where the gas tax was going away. Call me a cynic, but looks like an additional tax and/or fee.
Washington state gas tax was about $.50/gallon in 2022. According to AAA, average retail price per gallon of regular is currently $4.04, up 08 cents from a year-ago. The article's claim that tax would "increase roughly fifty more cents in 2023" has been proven as false in many news articles, and the AAA data would support this.
The greatest problem I see with a RUC is that the state would have to track every vehicle's miles on different types of roads. From the OP link,
"This would add a device to your vehicle that would automatically report the miles you drive through a combination of GPS and telecommunication technologies."
Sure, lots of folks would sign up for that......no, I don't think so.
"Surcharges are applied to owners of hybrids and EVs, but they don't come close to the amount of revenue collected by the gas tax." Simple solution - increase the surcharges so they do equal the revenue that is being lost in gasoline tax.

 

[Out of Steam]

Call me cynical, but pay paying road taxes through per mile fees instead of at the pump permits politically-favored people to be exempted without anyone knowing the better.

Probably not surprising if it gets bipartisan support.

 

[Walt34]

Miles driven would be tracked via a GPS device in your car. The privacy aspects of this would be formidable I would think.

That's a huge obstacle to overcome I'd think. But it's also the only way I can think of to be even close to fairness for people who travel out of state often, like us. Both the MD and VA state lines are within 20 minutes of where we live in WV and a good bit (I'm guessing 35% +/- 10%) of our driving is in one of those other states. Almost all of our local driving is probably 10 miles or less round trip and all of our driving over that is to another state.

If we took the trouble to measure, it wouldn't surprise me to discover that even half or more of our vehicle mileage is in states other than WV.

 

[Ronstar]

The theory is sound. But I'd have to know how they plan on NOT charging me for the multiple trips between Florida and Pennsylvania and many out-of-state trips that I've been taking for the last several years. I bet >30% of the miles on my car are from out-of-state travels.

Simple. GPS knows what state you're in. So GPS has the ability to tally up miles within a given state.

ETA: It would be ideal if each state had a similar setup, and the tax withdrawn monthly from a credit card by each state driven in during the month, based on the miles driven within each state.

 

[braumeister]

Thread title has been changed for accuracy.

 

[Koolau]

My understanding is that the study was done at the request of the state legislature. They want this to happen, IMO.

Miles driven would be tracked via a GPS device in your car. The privacy aspects of this would be formidable I would think.

The gas tax could not be eliminated quickly because so many projects are bonded via payment from the gas tax. Will there be a dollar for dollar reduction in gas tax collected for each dollar of new revenue? Then there are the privacy issues. Will a person’s travel data be private and secure? How can the public be assured of that?

Lots of items to discuss.

My "issue" with this (and it's being investigated in Hawaii as well) is that everyone sees the gas tax at the pump - every time. Raising it means everyone affected sees the effect every time they fill up. A mileage tax is easy to raise in the legislature, and no one notices until end of year tax bill (or whatever.) Which tax is more likely to be raised more often? Call ME cynical as well.

I've lived long enough to know that promises don't mean much to folks who are elected every 2 or 4 years but YMMV.

 

[Koolau]

Simple. GPS knows what state you're in. So GPS has the ability to tally up miles within a given state.

ETA: It would be ideal if each state had a similar setup, and the tax withdrawn monthly from a credit card by each state driven in during the month, based on the miles driven within each state.

Ideal is not the word I would use, but YMMV.

 

[RetMD21]

Michigan is apparently looking at tolls on major highways to increase non-gasoline revenue. It may be as much as 6 cents per mile paid by transponder or pay by plate. I suspect most states are looking to supplement gas tax revenue.

 

[folivier]

My opinion of this is that it will be an additional tax. I don't think there will be a reduction on gas taxes.

 

[Fermion]

this is a very unfair tax to the people in the south part of Washington state who have to drive to Oregon to buy large ticket items and avoid the Washington sales tax.

 

[Sunset]

this is a very unfair tax to the people in the south part of Washington state who have to drive to Oregon to buy large ticket items and avoid the Washington sales tax.

Very true.
Perhaps Oregon can equalize the issue by putting a toll on the bridge

 

[dmpi]

Call me cynical, but pay paying road taxes through per mile fees instead of at the pump permits politically-favored people to be exempted without anyone knowing the better.

Probably not surprising if it gets bipartisan support.

Exactly. Classic WA state politics. Low income will become exempt. People that live in 'repressed' areas will be exempt. Handicapped people, people under medicaid, non-profit service vehicles, etc. The list will go on and on.

 

[The Cosmic Avenger]

My "issue" with this (and it's being investigated in Hawaii as well) is that everyone sees the gas tax at the pump - every time. Raising it means everyone affected sees the effect every time they fill up.

Well, no, that's the whole point. EV owners don't see it at all. So as EVs become more popular, some alternative to gas taxes will probably become necessary. Virginia has a property tax on vehicles, although that means that it's not proportional to usage the way gas or mileage taxes are.

Right now, one combination of simpler and easier to implement is to simply place a yearly property tax on EVs while working out the details of how to better apportion a usage tax. Or just give up on a usage tax and make it more a part of the overall local and state budgets, as we don't charge people more taxes per child to cover educational expenses. (I'm not necessarily listing these options because I prefer them, I'm just putting on my project manager hat and musing on implementation and metrics.)

 

[REWahoo]

A bill was introduced in the TX legislature last session (they meet every other year) to tax EVs $200 per year and hybrids $100 per year to make up for lost gas tax revenue. EV proponents argued $200 was excessive as an ICE vehicle getting 30MPG and driving 15,000 miles a year would pay only $100 in gas tax at the current tax rate of $0.20/gal.

The bill did not pass but the legislature, which meets every other year, is once again in session [-]hide the women and children[/-] and another attempt to tax EVs is expected.

As an EV and hybrid owner I think it only fair I pay my fair share of taxes. I am hoping to see something along the lines of $100 for EVs and $50 for hybrids.


EDIT: Apparently three bills have been introduced so far, two in the house and one in the senate. Two of the bills would tax EV's $200/yr, one would tax EV's $100/yr. One of the $200/yr bills would also tax hybrids $100/yr.

 

[Out of Steam]

It's unimaginable that DC fast charging won't end up subject to sales or EV-specific per kWh taxes, if only to capture revenue from out-of-state residents.

What is left is collecting road taxes for miles driven that are powered by charging at home.

 

[CaptTom]

...Or just give up on a usage tax and make it more a part of the overall local and state budgets...

^^^This. The highway infrastructure is one of those few things we really do need government for.

Our whole economy depends on good transportation infrastructure, regardless of how many miles we, as individuals, drive. Regardless of how many KWHs or gallons of fuel we use. So-called use taxes play well to the masses, but they're a stupid way to fund roads.

 

[cbo111]

^^^This. The highway infrastructure is one of those few things we really do need government for.

Our whole economy depends on good transportation infrastructure, regardless of how many miles we, as individuals, drive. Regardless of how many KWHs or gallons of fuel we use. So-called use taxes play well to the masses, but they're a stupid way to fund roads.

I seem to recall that a number of states have an added EV fee on their annual vehicle registration to recapture some of what would be tendered when purchasing gas. Or maybe I'm wrong about that. Some times I equate things I read about on the internet with actual factual data.

 

[ownyourfuture]

I seem to recall that a number of states have an added EV fee on their annual vehicle registration to recapture some of what would be tendered when purchasing gas. Or maybe I'm wrong about that. Some times I equate things I read about on the internet with actual factual data.

STATE-BY-STATE FEES

Here's a rundown of the states that currently charge electric-vehicle owners added fees, according to the National Conference of State Legislatures:

California: $100 annual fee for a zero-emissions vehicle. Starting in January 2021, annual increases will be indexed to the consumer price index.

Colorado: $50 annual fee for full-electric and plug-in hybrid (PHEV) vehicles.

Georgia: $200 annual license fee for “noncommercial alternative fueled vehicles,” including EVs, but not PHEVs (unless the owner requests an alt-fuel license plate). The fee is automatically adjusted on an annual basis.

Idaho: $140 annual fee for EVs; it’s $75 for PHEVs.

Illinois: $100 annual fee for EVs beginning July 1, 2019.

Indiana: $150 annual fee for EVs; it’s $50 for hybrids and PHEVs.

Michigan: $135 annual fee for non-hybrid electric vehicles weighing less than 8,000 pounds; it’s $235 for those weighing more than 8,000 pounds. The state charges hybrid owners an extra $47.50 and PHEV drivers an added $117.50. These fees are indexed to the state gas tax and would rise incrementally if it is increased.

Minnesota: $75 annual fee on EVs.

Mississippi: $150 fee on EVs and a $75 fee on hybrids. Beginning July 1, 2021, these fees will be indexed to the inflation rate.

Missouri: $75 annual fee on EVs, and $37.50 on PHEVs.

Nebraska: $75 annual fee on alternative-fuel vehicles, including EVs.

North Carolina: $130 on plug-in vehicles, including EVs.

Oregon: $110 annual fee on PHEVs beginning on January 1, 2020.

South Carolina: $120 biennial fee for EVs; it’s a $60 biennial fee for hybrids.

Tennessee: $100 annual fee for EVs.

Utah: $60 annual fee for EVs; it increases to $90 in 2020 and $120 in 2021. Hybrids are assessed a $10 fee that rises to $15 in 2020 and $20 in 2021. It’s currently a $26 annual fee for PHEVs that jumps to $39 in 2020 and $52 in 2021. In 2022 increases will be indexed to the consumer price index.

Virginia: $64 annual license for EVs.

Washington: $150 annual fee for EVs.

Wisconsin: $100 annual fee for EVs.

 

[Koolau]

Well, no, that's the whole point. EV owners don't see it at all. So as EVs become more popular, some alternative to gas taxes will probably become necessary. Virginia has a property tax on vehicles, although that means that it's not proportional to usage the way gas or mileage taxes are.

Right now, one combination of simpler and easier to implement is to simply place a yearly property tax on EVs while working out the details of how to better apportion a usage tax. Or just give up on a usage tax and make it more a part of the overall local and state budgets, as we don't charge people more taxes per child to cover educational expenses. (I'm not necessarily listing these options because I prefer them, I'm just putting on my project manager hat and musing on implementation and metrics.)

Don't give them any ideas they haven't already thought of!

 

[Koolau]

^^^This. The highway infrastructure is one of those few things we really do need government for.

Our whole economy depends on good transportation infrastructure, regardless of how many miles we, as individuals, drive. Regardless of how many KWHs or gallons of fuel we use. So-called use taxes play well to the masses, but they're a stupid way to fund roads.

I don't understand why you believe use taxes are a stupid way to fund roads. IMHO the "inappropriate" thing about road taxes is that some taxing authorities allow the taxes to be used for other things beside roads but YMMV.

 

[Out of Steam]

IMHO the "inappropriate" thing about road taxes is that some taxing authorities allow the taxes to be used for other things beside roads but YMMV.

I mostly agree with you. Roads are expensive enough that any politically acceptable road tax isn't going to cover their full costs.

Given current highway death and injury rates, I do think it's fair to fund a proportion of emergency medical services through road taxes.