Taxed By The Number Of Miles You Drive

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VACATION SPOT OF THE FUTURE

They are going to tax you by the number of miles you drive, no doubt about it. States are getting wise to the loss of tax revenue with more people driving gas efficient vehicles so they are looking to tax people by the number of miles they drive. So in addition to paying $8 a gallon for gas, you will be paying another tax every time you fill up.

 

(CBS) College student Jayson Just commutes an odometer-spinning 2,000 miles a month. As CBS News Correspondent Sandra Hughes reports, his monthly gas bill once topped his car payment.

“I was paying about $500 a month,” says Just.

So Just bought a fuel efficient hybrid and said goodbye to his gas-guzzling BMW.

And what kind of mileage does he get?

“The EPA estimate is 60 in the city, 51 on the highway,” says Just.

And that saves him almost $300 a month in gas. It’s great for Just but bad for the roads he’s driving on, because he also pays a lot less in gasoline taxes which fund highway projects and road repairs. As more and more hybrids hit the road, cash-strapped states are warning of rough roads ahead.

Officials in car-clogged California are so worried they may be considering a replacement for the gas tax altogether, replacing it with something called “tax by the mile.”

Seeing tax dollars dwindling, neighboring Oregon has already started road testing the idea.

“Drivers will get charged for how many miles they use the roads, and it’s as simple as that,” says engineer David Kim.

Kim and fellow researcher David Porter at Oregon State University equipped a test car with a global positioning device to keep track of its mileage. Eventually, every car would need one.

“So, if you drive 10 miles you will pay a certain fee which will be, let’s say, one tenth of what someone pays if they drive 100 miles,” says Kim.

The new tax would be charged each time you fill up. A computer inside the gas pump would communicate with your car’s odometer to calculate how much you owe.Read more here:Tax Tax Tax

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