A special transportation committee gingerly stepped closer to proposing a tax on the miles a vehicle travels -- an odometer tax, you might say.
A subcommittee of the 21st Century Transportation Committee agreed this morning to have the full committee vote on a vehicle miles tax as one of several recommendations for raising transportation money. The committee is charged with finding new ways to pay for the state's growing road and travel needs as current revenue sources flatline or drop. The committee's vote this afternoon is expected to send the package of proposals to the legislature.
The vehicle miles tax likely will promote the most contentious debate, as it would charge car and truck owners based on their odometer readings at annual inspections.
Several subcommittee members, including legislators, questioned aspects of the tax that led to softening the language. The proposal will now say that the legislature should consider finding a replacement for the gas tax and consider the vehicle miles tax as an alternative without specifying a rate.
The material presented at the meeting, though, offered an example of a 1/4-cent or 1/2-cent per mile tax. That would cost a car owner $25 or $50 respectively for 10,000 miles of travel. Drivers on average put about 12,000 miles on a car per year, according to federal data.
Other proposals included raising the highway use tax charged on car sales, increasing registration fees, tolls on I-95 and I-77 and bonds.


Comments
Re: Vehicle miles tax idea advances
November 21, 2008 - 10:43am — mn2grafxHere is one for you....
Say I travel out of state. While driving my vehicle I end up putting on some 2-3000 more miles while out of state. Now I have to pay my state for the miles I drove in another state? How does that work?
Ok second theory here....
How will they do this? Read the odometer and implement a new database or an area in an existing database? Hello wouldn't that take funding to make and test? Even adding a simple little box would take money to program, money to implement across the state at the various inspection sites, money to pay the testers, and money to upkeep the servers it would need to be housed on. I mean come on now. Why spend more money to make less? Ok what about devices? You know to make sure the people don't just roll back the odometer a few hundred miles to save a few bucks. Would everyone have to go purchase these or would the state provide them? Ooops more money spent by either the consumer (which would probably get taxed at the shop selling the device too), or the government. Ooops what if it breaks?
I realize the government does some things backwards, take the way they name things, but this is going a bit far. How can yet another burden of taxes fly to the consumer? Aren't we taxed enough? Food, drinks, products, gas, state, federal? I came from Ohio we had local taxes too. Instead of hairbrain ideas how about something like a simple local tax, you know the one by the cities? Every city had their tax rates usually around 2%, this helped to offset stupid hairbrained ideas such as this one. Tax on gas is low and some cities even put no tax on beverages. Overall cities were able to overcome problems such as this!
Re: Vehicle miles tax idea advances
November 19, 2008 - 6:47pm — FFC1304This is but ONE new tax proposed by newly REelected NC democrackkks...
HOW much taxation is TOO MUCH???
STRIVE to be SMARTER than a NC democrackkk...
Re: Vehicle miles tax idea advances
November 19, 2008 - 5:35pm — meschreinerThe post says the mileage tax is being considered as "a replacement for the gas tax." That may doom the idea, given that a mileage tax that low couldn't bring in as much as the current fuel tax:
Mileage Tax:
12,000 miles per year @ 1/4 cent or 1/2 cent a mile = $30 or $60 per year.
Current gasoline tax:
12,000 miles driven in a vehicle that gets an average 25 miles per gallon =
480 gallons of gas per year.
480 gallons taxed @ the current 29.9 cents per gallon = $143.52
For the mileage tax to "replace" the gasoline tax, the mileage tax rate would have to be more than 1 cent per mile.
The idea that rural drivers would be hit disproportionately, doesn't follow. Rural people drive more, burning more gas, meaning they already pay gasoline tax disproportionately. A tax on gasoline consumption is already a tax on how far you drive, using your gas gauge instead of your odometer as the marker. The gas tax already taxes rural drivers more than city drivers, so that situation wouldn't change under a mileage tax.
The issue is miles driven, which have been going up and up, and gasoline consumption, which as vehicles get more efficient, will go down.
The scurrilous thing about this mileage proposal is that, at least with a gasoline tax you could cut the amount of gasoline tax you pay by buying a more efficient vehicle, consuming less gasoline and still driving all the miles that you previously drove.
The only way to escape the mileage tax would be to drive less -- which would inspire some to stay home, or take the bus (if one was available to take) or car pool.
Re: Vehicle miles tax idea advances
November 19, 2008 - 4:03pm — burwellstarkHey, that's a great idea! Tax people by the mile and thereby make it more attractive to stay home.
Necessities will still be purchased by people as they creatively re-design their driving routes, but 'casual' driving will wane. And as it does, so will spending on extras such as entertainment, weekend vacations, etc. As a result, money will be pulled out of local economies and small businesses, niche stores, regional attractions, etc., all groups of people and segments that need it the most.
What a wonderful idea in semi-recession: encourage people to stay home.
Re: Vehicle miles tax idea advances
November 19, 2008 - 3:59pm — omegamanMust be city slickers who are for this idea. Let the proponents of this miles tax idea live out in the country for one month and see how many miles they rack up. (Need a dozen eggs, milk - 22 miles R/T, nearest gas station - 18 miles R/T, nearest medical clinic - 30 miles R/T, nearest hospital - 70 miles R/T, haircut/hairdo/perm - 36 miles R/T)) Then let them go back to the drawing board.
But, if we're going to have a tax for ALL users of our roadways then why doesn't the legistators make it mandatory for all bicyclists register their bikes. After all, shouldn't they bare part of the burden since they clammored for wider roadway shoulders on which they ride AT THE EXPENSE OF MOTOR VEHICLE OPERATORS.
However, the upside to this road miles tax is that it will foster a whole new industry. People will be buying a second speedometer. They'll use the second speedometer the majority of the time and reconnect OEM speedometer occassionally. Or, for those of us with expensive toys, we'll just disconnect the speedometer and use the MPH function on our GPS to see how fast we're driving.
Re: Vehicle miles tax idea advances
November 19, 2008 - 2:54pm — jonoflockeBeware the ingenuity of government functionaries seeking new ways to raise tax money. When there's an economic slowdown, families and businesses tighten their belts and deal with it -- government redoubles its efforts to take.
Still, if they're seeking more highway funds, the first thing they could do is reform spending priorities.
Let raise taxes to 100% Re: Vehicle miles tax idea advances
November 19, 2008 - 3:09pm — mike27513Yes the Democrat Welfare Queens take taxis at taxpayer expense everywhere.
Great for the "Change We can Believe In " crowd. "Yes We Can!"
More Taxes Re: Vehicle miles tax idea advances
November 19, 2008 - 2:36pm — mike27513More Taxes for NC! The state with the highest Taxes in the South!
As the Beatles sang in Taxman-
Let me tell you how it will be,
There’s one for you, nineteen for me,
‘Cos I’m the Taxman,
Yeah, I’m the Taxman.
Should five per cent appear too small,
Be thankful I don’t take it all.
‘Cos I’m the Taxman,
Yeah yeah, I’m the Taxman.
(If you drive a car car), I’ll tax the street,
(If you try to sit sit), I’ll tax your seat,
(If you get too cold cold), I’ll tax the heat,
(If you take a walk walk), I’ll tax your feet.
Better Hurry Up though before Obama gets all the taxes.
Re: Vehicle miles tax idea advances
November 19, 2008 - 2:30pm — george32They're going to love this in rural areas where jobs and grocery stores may be 50 miles away like Crawford, Tx where the Bush ranch is located and much of the Dakotas, Wyoming, Montana, etc.