Have you ever heard of the vehicle miles traveled tax? No?
Well get ready to hear more about it, because the vehicle miles traveled tax, or VMT, is the latest way states are looking to make up for falling gas tax revenues.
"The VMT is likely the way states will raise money in the future for their roads and infrastructure," said Joshua Schank, president and CEO of the ENO Center for Transportation in Washington, D.C. "The states aren't yet to the point where they've figured out exactly how to implement the VMT, but they'll get there."
Taxing Times For Electric Cars?
CNBC's Phil LeBeau reports electric car owners may be facing a surprising new tax coming their way.
Even though the VMT is more of an idea than a reality at this point, the fact is states are looking at implementing it as a way to make up for falling gas tax revenues. Those revenues are the primary way states pay for maintaining their roads, highways, bridges and in recent years those budgets have been under pressure.
Why? Blame it on the double whammy of a recession prompting people to drive less, which means they are filling up less often. On top of that, Americans are increasingly driving more fuel efficient vehicles, including hybrids, which means people make fewer trips to the gas station. According to the University of Michigan, the average fuel economy for a new vehicle sold in 2012 was 23.8 MPG, an all-time high.
Taxing Electric Cars
Starting in February the state of Washington will tax electric vehicle owners $100 per year. It's estimated there are a little more than 1,500 electric cars in Washington.
The money raised will go to the state's road maintenance fund. In essence, Washington wants electric car owners to pay $100 for the privilege of driving around the state.
Meanwhile, lawmakers in Oregon are kicking around the idea of taxing high mileage vehicles starting in 2015. The Oregon tax could be a flat annual fee and/or a tax per mile driven.
Either way, what's happening in the Pacific Northwest is raising a number of questions. The primary one being: Is it only a matter of time until anybody owning a car or truck is paying a special tax based on how much they drive their car?