Replacing the gas tax with distance-based charging


In the future, you may receive a bill that shows you a map of where you drove and how much you owe. The map above shows an actual, circuitous route I took from Avondale to the Loop, and was generated by a GPS device I carry. 

This is part two of two about a seminar in October about infrastructure funding and financing held by the Metropolitan Planning Council at their office at 140 S Dearborn. The first article talked about innovative ways to fund construction of highways, airports, transit, and other capital-intensive projects. The final speaker, Dr. Paul Hanley from the University of Iowa, talked about charging drivers based not on how much gas they use, but the distance they drive. This is known under several names but here I’ll be using “mileage charge” (see note 1).

A mileage charge can make up for the loss of gas tax revenues that’s happening because of an improvement in cars’ fuel efficiency, and that Americans as a whole are driving less. It would also charge those who drive electric cars; the current gas tax system, in essence, has those who drive the least efficient automobiles pay more for 100 miles of driving on roads than those with the most efficient automobiles. Each jurisdiction you drive through could have a different charge, similar to how each state, county, and city can charge a different rate for gas taxes (see note 2). Continue reading Replacing the gas tax with distance-based charging