Sunday, February 14, 2010

Let's Talk Honestly About a VMT Tax

Dallas Morning News
Micheal Lindenberger // February 10, 2010

As vehicles get more efficient, they will travel further on each gallon of gas. So each year, each driver will pay less in gas taxes, even as they drive as much or more on the roads that must be kept up. TxDOT chief Amadeo Saenz likes to say his old Suburban got 12 miles to the gallon and his newer one gets 24.

The big idea:So what to do it about? Increasingly, what we're told is that the future should include a tax on miles driven. There are lots of ways to do this, but none are simple.

So what to do? Easy enough: If the politicians believe more revenue is needed to pay for transportation, index the rate to keep up with both construction costs increases. If they believe it's being eroded by efficiency, simply index it to the increase in miles per gallon of the average car in Texas. Lawmakers could simply establish a baseline for the average fuel efficiency of the Texas fleet. The feds already track this here, and lawmakers could set the gas tax rate to increase every couple of years by an amount that is equal to the average increase in fuel efficiency.


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