6/6/2005
US, UK Move Toward Per-Mile Driving TaxOregon satellite road tax pilot begins this fall. UK announces plans for nationwide program.

This fall, the Oregon Department of Transportation will implement a federally funded road tax pilot project. Twenty vehicles equipped with a GPS receiver will fill up at one of two special gas stations that download mileage information from the GPS device, charge the road tax and refund the amount of the gas tax automatically. Initially, the special black box will not record location data, just total mileage in-state and out-of-state, with the latter mileage being tax-free. Oregon hopes to expand the pilot to 280 vehicles by spring 2006. The $2.9 million pilot program is almost entirely funded by the Federal Highway Administration.
On Sunday, UK Transport Secretary Alistair Darling introduced his proposal for a similar nationwide road tax plan on Sunday. His proposal would add built-in "congestion pricing" by recording the places and times of travel. He wants a pilot program running in West Midlands or Greater Manchester within two years.
The gas tax is the main source for automobile taxation in both the US and UK. Although the US gas tax was initially designed to be a use tax to fund road maintenance and construction, about half of the money is diverted to other purposes. The amount of the tax in the UK has skyrocketed, accounting for 75 percent of the cost of gas and combined with other motorist taxes comprises 11 percent of the government's tax revenue.