Say Anything Blog

In North Carolina some politicians would like to install GPS receivers in cars, and then use them to track how far people drive and then tax them based on the mileage.

And they’re doing this because people are buying less gasoline and thus tax revenues are falling.

With gas-tax revenues plummeting, the state of North Carolina is looking seriously at taxing motorists for how far they drive.

If the “road-use tax” is implemented, it would at first be simple – with the state checking your odometer annually and taxing you based on how many miles you have driven. But transportation experts say new GPS technology could allow the state to charge people different rates based on when and where they drive, in an attempt to manage congestion.

Talk of a Vehicle Miles Traveled tax has long been discussed as a necessity in a decade or so, because cars are becoming more fuel efficient, and states and the federal government are losing gas-tax revenue.

The (pertinent) privacy questions aside, what I don’t understand is what the justification is for this new tax.

Gas taxes are supposed to fund repair and maintenance to road and highway infrastructure, no?  Well if people are driving less, less maintenance should be needed right?  So what’s the justification for a new tax?

Also, if people are using less gas that means they’re driving less right?  So what makes these politicians think that slapping a GPS in the car and taxing mileage is going to result in anything different.  I suppose you could argue that it would mean people with more fuel efficient vehicles, who are buying less fuel, would pay the same amount of tax as someone driving an SUV.  But is that really a direction we want to go?

Frankly, I think the fuel tax is a perfectly logical one.  As I’ve already mentioned, it’s supposed to fund roads and highways (though politicians are notorious for swiping it for other purposes), and so basing the tax on the amount of consumed fuel makes sense.  The more you drive the more you use the roads and highways and thus the more tax you pay.  If you drive a heavier, less fuel efficient vehicle you’ll pay less tax than a lighter, more fuel efficient vehicle.

If people are driving less, less tax revenue should be needed.  I don’t see a problem here outside of political greed and a desire to, literally, tax anything and everything that moves.