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Mileage Tax Proposal Rumors?

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On: Thu, Sep 24, 2009 at 11:05AM | By: Clay Ritchings

Mileage Tax Proposal Rumors?

Has anyone heard about this proposed new tax? Instead of taxing the gas that we use, we will be taxed on mileage. Drivers will be tracked through GPS chips installed in their cars and charged a quarter-cent per mile.

The concept for a mileage tax was created in response to declining gas tax revenues due to improved fuel-efficiency in cars. All this time we are encouraged to buy fuel efficient vehicles and offered “Cash For Clunkers” rebates, and now, they are going to change the system to make sure that they get their chunk of change? I believe I pay enough tax on my vehicle via sales tax and vehicle registration fees, that, by the way, just doubled here in Florida.

Here is how the system will work: you will drive up to the pump and there's a mileage reader there, very much like a modern toll reader, which identifies the car as a mileage fee payer, and the total mileage driven in each zone is transferred by a wireless radio frequency that goes into a database, and the mileage fee rates are applied.

They claim that the GPS would not be used to track a driver’s exact movement — only to calculate the number of miles driven, but anyone using a Sunpass or EZPass-type toll device should know that information is stored and available for review; by whom is the million dollar question.

How much is it going to cost to implement this plan? Who will pay for all the pump upgrades? How will they handle vehicle types? After all not all driving creates the same problems and not ll vehicles impose the same wear and tear on the highway system.

Right now Massachusetts and Oregon are considering this system, and if they are successful, you can expect others to follow. I won't get deep into the privacy issues, I will leave that up to others that are far more qualified, but I can tell you this, if this passes, I can see a big increase in the sale of 5-gallon gas cans at your local Walmart.


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