Wednesday, February 4, 2009

Mileage Tax

The state of Minnesota might replace the gas tax with a new tax on the miles you drive. At first glance this seems to me like a good idea. Gas tax revenues are running about 3 to 5 percent below expectations, despite gas tax increases since last April totaling 5.5 cents per gallon. It appears that the gas tax won't be an adequate source of revenue so the state needs to come up with another way of funding the transportation systems.

A mileage tax recognizes that future vehicles may use less gas than today's but still have an impact on roads and bridges. Heavier vehicles would pay a higher tax. A mileage tax would likely be assessed using satellite tracking, in addition to tracking mileage the system would involve communication of safety information between vehicles and roadside devices. Global-positioning technology to track individual drivers; this is where the idea gets a little scary. I'm not a fan of big brother watching me.

I drive a small, fuel efficient vehicle and I do not drive a lot of miles in a year so for me I would probably come out better than most on this type of tax, but the idea of a satellite tracking me, I'm not sure I like that.

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