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Transportation Power The Almighty Buck

To Replace Gas Taxes, Oregon and Utah Ask EVs To Pay For Road Use (arstechnica.com) 295

An anonymous reader quotes a report from Ars Technica: [T]he U.S. has traditionally paid for the upkeep of its roads via direct taxation of gasoline and diesel fuel, which means that as our fleet becomes more fuel-efficient, that revenue will drop in relation to the total number of vehicle miles traveled each year. As a result, some states are starting to grapple with the problem of how to get drivers to pay for the roads they use in cars that use less or even no gas per mile. At the start of this year, Utah has begun a pilot Road Usage Charge program, coupled to an increase in registration fees for alternative fuel vehicles. Assuming a state gas tax of 30c/gallon and 15,542 miles/year driven, Utah says it collects $777 a year from a 6mpg heavy truck, $311 from a pickup getting 15mpg, $187 from a 25mpg sedan, $93 from a 50mpg hybrid, and nothing from anyone driving a battery EV.

So in 2020, Utah is increasing vehicle registration fees. In 2019, registering a BEV in Utah would cost $60; in 2020 that will be $90, increasing to $120 in 2021. PHEV fees were $26 in 2019, increasing to $39 this year and $52 in 2021, and not-plug-in hybrid fees have gone from $10 to $15, increasing to $20 next year. An extra $30 a year -- or even $60 a year -- is pretty small in the grand scheme of things, particularly considering how much cheaper an EV is to run. But Utahns with EVs have an alternative. Instead of paying that flat fee, they can enroll in the pilot program that involves fitting a telematics device to the car. The device tracks the actual number of miles driven on Utah's roads. These are billed at a rate of 1.5c/mile, but only until the total equals whatever that year's registration fee for the vehicle would have been; participating in the pilot means you could pay less than you would otherwise, but Utah's Department of Transportation says that participants would not ever be charged more than that year's registration fee. The data will be collected by a contractor called Emovis, which operates toll roads around the U.S.
As for Oregon -- another state working to solve this problem, the state is increasing its state gas tax by 2c/gallon, and like Utah, it's also increasing vehicle registration fees. "Now, fees for registering your car in Oregon will depend on how many miles per gallon your car gets; a two-year registration for something that gets below 19mpg will cost $122, rising to $132 for a vehicle between 20â"39mpg, then $152 for a vehicle that gets 40mpg or better, and $306 for a BEV," reports Ars Technica.

Thankfully, if you own a 40+mpg vehicle or a BEV, you can cut that two-year fee to $86 by enrolling in OReGO. However, you will need to fit your qualifying car with a telematics device to track the actual miles traveled on the state's roads. "Those are billed at 1.8c/mile -- Oregon evidently decided its roads are worth a little more than those in Utah -- but you can then get credited for any fuel tax you pay in the state," the report adds.
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To Replace Gas Taxes, Oregon and Utah Ask EVs To Pay For Road Use

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  • Trucks destroy the roads more than anything else. Road taxes should be based on vehicle weight (and tire type) in my opinion.

    • Sometimes (Score:4, Interesting)

      by JBMcB ( 73720 ) on Friday January 03, 2020 @10:43PM (#59584746)

      In some states they are taxed higher, in some they are taxed less. Depends on how involved the Teamsters union is involved in state politics. They generally don't like high truck taxes.

      • Re: Sometimes (Score:5, Informative)

        by Kobun ( 668169 ) on Friday January 03, 2020 @11:00PM (#59584804)
        Truck taxes aren't 10,000 times higher than a passenger car, which is where they should be based on road damage.
        • Guess where who ends up paying that added tax? I am asking you to use a bit of common sense when you answer it. [spoiler] YOU when the products that truck brings in has higher cost to pay for said tax.
          • Re: Sometimes (Score:5, Insightful)

            by Rockoon ( 1252108 ) on Friday January 03, 2020 @11:16PM (#59584868)
            Yet isnt it still better if the cost of road damage was paid for more directly at the source of that damage instead of most indirectly by "tax payers in general"?

            If you consume more than I, shouldn't you pay more for the damage generated by that consumption? The current state of affairs is that I am taxed for this based mostly on the miles I drive, yet my car is lighter than most vehicles and causes the least damage.
          • Re: Sometimes (Score:5, Insightful)

            by Waffle Iron ( 339739 ) on Friday January 03, 2020 @11:31PM (#59584924)

            Guess where who ends up paying that added tax? I am asking you to use a bit of common sense when you answer it.

            [spoiler] YOU when the products that truck brings in has higher cost to pay for said tax.

            At least that would be allocating economic costs in a way that makes sense so that overall economic efficiency gets optimized.

            Overall costs to consumers would likely fall, since: 1. Consumers aren't personally saddled with the share of road taxes caused by trucks, and 2. Businesses would shift more of their shipping to railroads due to higher trucking costs.

            The markets would then find the correct balance between road damage costs and costs of to using a less convenient (but more damage-resistant) transportation method. The markets would no longer be distorted by the government's income redistribution from consumers to trucking companies.

          • Oh, so give them a free ride, just so we don't pay a few cents more on a few products? Government handouts to truckers, no? If this was a private toll road (the kind dreamed about by anti-tax people), the owners of the road most definitely would charge trucks a heft price compared to EV drivers just to cover the costs.

            • seems like what i said went over your head by about 3-4 miles. They already get a free ride regardless how much you tax them cause they just pass that tax on to buyers of the products they transport which in the end you the end customer of those products ends up paying. EV's for most part get away with paying little to no tax on roads they drive and damage. Pretty sure most EV's weigh more then their gas powered counter part when you add in the weight of motors and all the battery's needed to get decent ran
        • If you did that, truckers would go out of business, hence why you have disproportionate vehicle taxes. Also your property taxes and sales taxes pay for road maintenance, the problem for states and governments is that people are paying less money for everything and more and more of the economy is taken out of the tax-heavy, overspending states (pretty much the entire Internet business model) and migrating to places where businesses, tax payers and governments have more healthy relationships.

          • If you did that, truckers would go out of business

            No they wouldn't, they'd make more money. Oh, over time, many of them would, because a fair amount of cargo would shift to railroads -- which is where, economically, it should be. But railroads have their own problems, mainly higher transportation delays. So what would really happen is that goods that need rapid transportation would stay on trucks, but the fees paid to truckers would be higher. When overall costs increase for a whole industry, the margin extractable as profit actually goes up. So there

        • To have a more complete view, however, trucks dont do much damage to most roads because they only very rarely drive on most roads. All those cul-de-sac and side roads essentially only see UPS/FedEx/UHaul trucks, not 18 wheelers.

          So the equation that calculates total cost to road maintenance would include weight, but also include percentage of roads effected, as even those cul-de-sac's need repaving every 20 years.
          • And none of those side roads are paid for via state and federal gas taxes. Those side roads are paid by county and city property and sales taxes.

        • Comment removed based on user account deletion
      • Re:Sometimes (Score:5, Interesting)

        by bugnuts ( 94678 ) on Saturday January 04, 2020 @02:26AM (#59585266) Journal

        By far, this is true. Bicycles have no measurable effect on roads, passenger cars have very little, but heavy trucks have a lot. It's somewhat exponential. And generally, the heavy trucks doing most of the damage are run by people making the most money, while the OP tries to point out that those doing little to both the environment and roads should pay more taxes. Let's defend those destroying our infrastructure and not paying a fair share, while demonizing those helping the environment.

        And this leads to a false assumption by the OP, when he says "[T]he U.S. has traditionally paid for the upkeep of its roads via direct taxation of gasoline and diesel fuel". Roads are, by far, not paid for by gasoline taxes. They should be, but are not. Mostly it's paid through other taxes, both local and federal.

        The cost of roads has increased, but the federal gasoline taxes have not gone up in decades. This is because no legislator wants to be involved in a tax hike for necessary infrastructure, and this is also one more reason why we have bridges collapsing and people dying, literally, under the weight of an aging infrastructure.

        Elsewhere in this thread I see idiots both not knowing what socialism is, and claiming taxation is theft, and all sorts of ridiculous propaganda. They're morons and liars. A society functions better when its citizen and infrastructure needs are met. It functions worst when we pander to the rich and punish those trying to help through early adoption, and even when we don't assign appropriate taxes for the damage caused.

    • by blindseer ( 891256 ) <blindseer@eartBO ... minus physicist> on Friday January 03, 2020 @11:17PM (#59584870)

      Trucks destroy the roads more than anything else. Road taxes should be based on vehicle weight (and tire type) in my opinion.

      For about 100 years the amount of gasoline or diesel fuel consumed was a fairly accurate proxy for this. I'll see people argue it shouldn't be a linear relationship to fuel burned to the costs of repairs since burning more fuel per mile can mean more of a square, cube, or even fourth power, relationship to the damage to the road.

      I have seen similar claims, one being that a light vehicle produces virtually no wear to the road surface and heavy trucks do virtually all the wear. If true then perhaps to keep the math simple the state taxation authority could just charge a flat rate for every light vehicle and then have something more complex for commercial traffic.

      What I'm seeing is private companies and governments finding excuses to add more electronic surveillance to privately owned vehicles. They are effectively paying people to give up information on their driving habits, paying them with taxes they took from them in the first place. If you attach this tracking device to your car then you can get a lower rate on your road taxes, but the rate is artificially high to pay for all the additional equipment and labor.

      This is just making the whole taxation process overly complex to encourage people to get tracked. They already have good data on how much people drive, where they go, how fast, etc. Now they are just boiling the frog on getting more detail and seeing how far they can push this until people complain. The government is handing this over to private contractors so they don't see the entire cost, and the private companies can sell this data to make up the difference. People not paying attention will like it because they will think that they will end up paying less. They don't pay less, there's a large cost in overhead from a complex system like this. Those tracking devices cost money. The wages for the people that collect the fees cost money. In the end not a lot actually goes to keeping the roads maintained but a lot of valuable private data was collected, and the taxpayers are getting duped into paying for the collection.

      The government just keeps getting bigger, at some point it will collapse under it's own weight. Right?

    • Oh shut up. One truck carries 45,000 1 lb meals, which are each bought at drive thrus by 200 lb people driving 3000 lb cars, clogging the roads with their massive inefficiencies. Once self driving comes to negate driver costs, everything will be delivered to everyone. It will literally be cheaper to transport your entire office cubicle home while you work than to drive.

      • The damage to roads goes up far more as weight goes up, so a hundred cars at 3000lb each does less damage than one truck at 45,000lb. One million kittens walking across my foot single file won't hurt, but one person stepping on my foot would.

        • by uncqual ( 836337 )

          I suspect one million kittens walking across your foot would result in abrasion injuries (assuming it's done sequentially, not over one million years of course). Given that kittens have needle-like claws and are not that good at retracting them, the injuries might be pretty bad.

      • 'Self driving cars' are a meme and will never be practical or even really safe.
    • Comment removed based on user account deletion
  • by registrations_suck ( 1075251 ) on Friday January 03, 2020 @10:53PM (#59584774)

    Charge fee as follows:

    Less than 4 wheels: $100/year
    Under 7000 GVWR: $250/year
    7000-12000 GVWR: $800/year
    12001-20000 GVWR: $1200/year
    20001-40000 GVWR: $2000/year
    40001+ GVWR: $4000/year

    • The numbers are probably pulled out of your ass, but this is close to the right approach for sure.

      However, I suggest it be based on miles driven instead of length of ownership.
      • Yes, I pulled the numbers out of my ass. I was just demonstrating the concept.

        As for miles drive ...as a low mileage driver, I say hooray! But as a sane person, I say no thanks. It is just adding complication. Where were the miles driven? If half your miles are driven out of state, why should you pay more to the state where your car is registered? And are you going to account for how many people are in the car? Surely if you cart around 3 people you should pay more than someone driving alone. Or if you ar

  • Commercial vehicles pay road user charges per kilometre based on the weight of the vehicle, number of axels etc. They have to pay in advance in lots of 10,000kmi

  • by blastard ( 816262 ) on Friday January 03, 2020 @11:02PM (#59584810)

    The previous Republican administration in Wisconsin stuck a $100 surcharge on electric vehicles. Doesn't matter if you drive an EV with such limited range that you would be unlikely to get even 15K miles in a year. And if you drive a weird version like the range extended BMW, you can skip the tax.

    And no special access to even the multi occupant on ramps.

  • by Slugster ( 635830 ) on Friday January 03, 2020 @11:29PM (#59584916)
    We have seen this story pop up occasionally for several years now--about how fuel tax was the major way that most US states paid for road maintenance--and how (in order to encourage EV adoption) EVs weren't paying anything in that regard, despite the fact that hybrids and EVs were higher-priced than comparable fuel-burning vehicles.

    I think the only thing surprising here is how fast these states changed their tune regarding EV taxes. It would appear that the one thing that government is most proactive about is protecting their own budgets....?
  • I think this is a really stupid cash grab. Hell in my county there's a fucking bicycle tax. Oh, and a kayak/canoe tax.

    But, we don't have a sales tax, nor do we base registration fees off of the value of the car (like AZ).

    So while this is stupid, and just another example of Salem trying their version of 'do-gooderism' -- it could be (and will get) much, much worse.

  • Road tax on vehicle fuels worked pretty well when the fuel use was roughly proportional to road use. (In some states it got broken by government diversion, along with bridge tolls, to things like buses, commuter trains, etc. but that's a separate issue.)

    So why not use a separate meter and a separate rate, including energy and appropriate road-use tax (but excluding non-automotive energy use rate schemes), for charging EVs?

    It could easily be collected on for-pay charging stations.

    Residential rates might co

    • That's how diesel works, you can buy "farm diesel" that is not for use on public roads and isn't taxed. It's dyed a different color and you're caught using it on public roads you can get in trouble, although I wonder if this has ever happened even once.
      • I know a farmer who almost lost his business because he got caught using tractor fuel in his semis too many times. State Highway Patrol, in most states, will really stick it to semi drivers when they can. If they get pulled over for something small they're often fully inspected and that includes checking the fuel. The fines are hefty, which motivates the state to try and collect as many as possible.

      • by dryeo ( 100693 )

        They used to have roadblocks here in BC where they'd do a quick mechanical check on your vehicle including pulling a sample of your gas/diesel to make sure you weren't using purple gas. Must be close to 40 years since I've seen that type of check.

    • I think you're overcomplicating things. The tax could just be on all electricity that's consumed. Then the tax could be very small and collect tons of revenue. Everyone's electric bill would be a couple bucks higher and since that fluctuates month to month for most people a lot of people wouldn't even realize it.

    • Residential rates might come out lower than for ordinary electricity use, giving an incentive for users to add an extra metering system for the vehicle charging outlets.

      And what if I only use one meter for everything? The way I see it this would be easy to game the system.

      1. If electricity for "home use" was cheaper than electricity for "car use" then I could just charge the car using "home" meter and save money.
      2. If electricity for "car use" was cheaper (including the tax etc) than electricity for "home use" then I would just connect everything to the "car" meter and save money.

  • by schwit1 ( 797399 ) on Friday January 03, 2020 @11:42PM (#59584956)

    Every vehicle already has a mileage tracking device, it's called an odometer. The real goal is 24x7 tracking of people.

    • Re: (Score:2, Insightful)

      by timeOday ( 582209 )
      No, because the odometer doesn't know on whose roads it is accumulating mileage. And also because a locale-keyed odometer wouldn't collect much personal info, so long as there weren't too many locales defined (e.g. states, or counties at most).
      • by Way Smarter Than You ( 6157664 ) on Saturday January 04, 2020 @12:47AM (#59585138)
        You'll end up with a gps tracking device with your name, home address, phone, driver's license ID, insurance number, average speed, max speed, times you slam on the brakes, rate of deceleration/acceleration average and max, every gps coordinate you stop at, duration/date/time of stop, mother's maiden name and how long it took you to cum from your last bj (which we know what your friends, not your wife based on theirs and your gps coordinates and your text messages).

        But! At least we will finally have a properly measured and fairly assigned road usage tax! Yay!
      • No, because the odometer doesn't know on whose roads it is accumulating mileage. And also because a locale-keyed odometer wouldn't collect much personal info, so long as there weren't too many locales defined (e.g. states, or counties at most).

        So long as the GPS trackers are optional then at least people can opt out of the government tracking their movements. With the trackers there's more overhead, potentially room for dispute if the GPS loses signal or can't differentiate between a private lane that is parallel to a public road. This is needlessly complicating the process, and no doubt to produce an excuse to track driver habits.

        This is an unwarranted search, plain and simple. I don't care if it computes my taxes more accurately. In fact it

  • by An0nYm0u5c0wArD ( 6251996 ) on Saturday January 04, 2020 @12:54AM (#59585150)

    In my state, we have to get our cars inspected each year before we can renew our license plate registration. Part of the plate registration fee includes various taxes.

    I say they just log the odometer reading each year to determine miles driven. Don't bother whining that some of those miles may not be driven within your home state. Get over it. It's the least invasive solution, which is also the most fair.

    Then, they can give drivers a discount based on the fuel type. If you're driving a gasoline vehicle, they give a reduced tax since you most likely already paid taxes in fuel purchases. They could even reduce the fuel taxes at the pumps to account for the new tax.

  • "Now, fees for registering your car in Oregon will depend on how many miles per gallon your car gets; a two-year registration for something that gets below 19mpg will cost $122, rising to $132 for a vehicle between 20–39mpg, then $152 for a vehicle that gets 40mpg or better, and $306 for a BEV."

    Right. Because punishing people for buying more fuel-efficient vehicles sends the correct message for the greater good of humanity.

  • by h33t l4x0r ( 4107715 ) on Saturday January 04, 2020 @03:10AM (#59585340)
    call it a vice tax. That's why cigarettes cost $10/pack instead of $2

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