Paying by the Mile - Not a Question of "If" but "When and by How Much"

Justin Hyde is firmly in the camp that 'Vehicle-Miles-Traveled' (VMT) fees are coming - and the release of a GAO report last month may support that contention. Privacy concerns from GPS and collection costs are challenges that were considered.

2 minute read

January 14, 2013, 7:00 AM PST

By Irvin Dawid


When to implement VMT fees and how much to charge - those are the two questions yet to be decided according to Hyde. The key may be when, or if, Congress meets one of the chief recommendations of the report (PDF) from the General Accounting Office - "establishing a pilot program to test the viability of such fees for commercial trucks and electric vehicles."

Justin Hyde writes that "the federal government's top accountant has told Congress it should experiment with taxing drivers by the mile to make up billions of dollars in shortfalls."

Since 2008, Congress has been forced to kick in $52.8 billion to patch the sinkhole in the federal highway building fund; states have been forced to spend money from other sources or even turned rural roads from pavement back to gravel to keep maintenance costs down. The U.S. Government Accounting Office says over the next 10 years, the federal road jar will run $110 billion short without changes

The favored answer of road engineers? Taxing by the mile driven. A handful of states — Oregon, Minnesota and Nevada — have already tested ways to use GPS and other electronics to adjust taxes. In the Nevada and Oregon tests, drivers had devices installed on their cars that sent data to special fuel pumps; those pumps automatically adjusted their fees based on how far the vehicles had driven, without revealing data that would amount to tracking drivers.

The GAO estimated that a pay-by-the-mile tax of 0.9 cents to 2.2 cents per mile designed to replace fuel taxes would raise a typical driver's costs from $98 to between $108 to $248 (per year).

Unlike prior reports made to Congress on keeping the Highway Trust Fund solvent and the nations roads, bridges and public transit in a state of good repair (such as the National Surface Transportation Policy and Revenue Study Commission and the National Surface Transportation Infrastructure Financing Commission)this report was not written by transportation officials and policy analysts but by those who watch how the federal government spends taxpayer dollars and answer to the Comptroller General of the United States.

The report clearly states two major but surmountable challenges at the onset:  

  • "Mileage fees for passenger vehicles, however, continue to face significant public concerns related to privacy as well as cost challenges. Privacy concerns are particularly acute when Global Positioning System (GPS) units are used to track the location of passenger vehicles.
  • (I)mplementing a system to collect fees from 230 million U.S. passenger vehicles is likely to greatly exceed the costs of collecting fuel taxes."


Thursday, January 10, 2013 in Motoramic (Yahoo! Autos blog)

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 16, 2025 - Diana Ionescu

Green vintage Chicago streetcar from the 1940s parked at the Illinois Railroad Museum in 1988.

Chicago’s Ghost Rails

Just beneath the surface of the modern city lie the remnants of its expansive early 20th-century streetcar system.

July 13, 2025 - WTTV

Blue and silver Amtrak train with vibrant green and yellow foliage in background.

Amtrak Cutting Jobs, Funding to High-Speed Rail

The agency plans to cut 10 percent of its workforce and has confirmed it will not fund new high-speed rail projects.

July 14, 2025 - Smart Cities Dive

Worker in yellow safety vest and hard hat looks up at servers in data center.

Ohio Forces Data Centers to Prepay for Power

Utilities are calling on states to hold data center operators responsible for new energy demands to prevent leaving consumers on the hook for their bills.

July 18 - Inside Climate News

Former MARTA CEO Collie Greenwood standing in front of MARTA HQ with blurred MARTA sign visible in background.

MARTA CEO Steps Down Amid Citizenship Concerns

MARTA’s board announced Thursday that its chief, who is from Canada, is resigning due to questions about his immigration status.

July 18 - WABE

Rendering of proposed protected bikeway in Santa Clara, California.

Silicon Valley ‘Bike Superhighway’ Awarded $14M State Grant

A Caltrans grant brings the 10-mile Central Bikeway project connecting Santa Clara and East San Jose closer to fruition.

July 17 - San José Spotlight