Oregon Looking at a Mileage Tax

Among the many taxes that we pay is the gasoline tax. Oregon, which has no sales tax, uses the gasoline tax as its primary funding for road repairs. Governor Ted Kulongoski wants to change that.

“As Oregonians drive less and demand more fuel-efficient vehicles, it is increasingly important that the state find a new way, other than the gas tax, to finance our transportation system,” Governor Kulongoski told the News-Record.

There are obvious problems with a complete switchover. Many cars do not have GPS devices; equipment would also be needed at every gasoline station. And what would happen if an Oregonian bought gas in Washington state? Or if he drove there; would he have to pay the mileage tax on out-of-state driving?

Still, the linked article gives a look at a possible future source of government revenues. Interestingly enough, Governor Kulongoski is asking for the gasoline tax to be raised by $0.02/gallon.

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