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

Use Code 25for25 at checkout for 25% off an annual plan!

Redlining map of Oakland and Berkeley.

Rethinking Redlining

For decades we have blamed 100-year-old maps for the patterns of spatial racial inequity that persist in American cities today. An esteemed researcher says: we’ve got it all wrong.

May 15, 2025 - Alan Mallach

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.

May 21, 2025 - Diana Ionescu

Rendering of California High-Speed Rail station with bullet train.

California High-Speed Rail's Plan to Right Itself

The railroad's new CEO thinks he can get the project back on track. The stars will need to align this summer.

May 19, 2025 - Benjamin Schneider

Red SF Muni ticketing machine.

San Francisco Muni Raises Fares a Second Time

A 10–cent fare hike for adults is part of the agency’s plan to chip away at a growing budget deficit.

May 21 - San Francisco Examiner

Electric car charging station with several Chevy Bolts charging in parking lot of store in Bellingham, Washington

Electric Grid Capacity Could Hamstring EV Growth

Industry leaders say the U.S. electric grid is unprepared for the increased demand for power created by electric cars, data centers, and electric homes.

May 21 - GovTech

Top view new development riverside residential and commercial neighborhood with vacant land in Texas, USA.

Texas Bill Supports Adaptive Reuse in Commercial Areas

Senate Bill 840, which was preliminarily approved by the state House, would allow residential construction in areas previously zoned for offices and commercial uses.

May 21 - The Texas Tribune