An Argument Against VMT Fees as Replacements for Gas Taxes

Vehicle Miles Traveled (VMT) fees are a bad way to pay for roads, according to an article by Joe Cortright.

2 minute read

February 6, 2018, 6:00 AM PST

By James Brasuell @CasualBrasuell


Traffic

Photobank gallery / Shutterstock

"While we desperately need a way to pay for roads that better reflects the value of the space we use, just moving to a new model isn’t enough. If we don’t get the new pricing system right, it could make many of our transportation problems worse," writes Joe Cortright.

According to Cortright, technology and consumer acceptance have advanced beyond the usefulness of the VMT fee. Instead, Cortright suggests a more holistic approach to pricing:

So as we think about how to design a road finance and pricing system to replace the gas tax (and other taxes), we ought to have a system that accounts for all  the cost-drivers associated with travel:  heavier vehicles that cause more road wear should pay higher fees, as should vehicles that pollute more. How much you pay to drive on a road should be related to how much that road costs to build and maintain. Use a congested urban highway at the peak hour, and you’ll pay a higher fee than if you use a rural road at 2 am.

The article critiques the VMT fee from a couple of additional angles, arguing that a VMT is unlikely to raise as much revenue as proponents of the scheme expect, and that the gas tax is already an effective carbon tax—a much more effective carbon tax than a VMT fee can be. Planetizen coverage of the first experiments with VMT fees includes stories from Oregon, Hawaii, and California. Other states could follow.

Tuesday, January 30, 2018 in City Observatory

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!

Interior of Place Versailles mall in Montreal, Canada.

Montreal Mall to Become 6,000 Housing Units

Place Versailles will be transformed into a mixed-use complex over the next 25 years.

May 22, 2025 - CBC

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 28, 2025 - Diana Ionescu

White and yellow DART light rail train in Dallas, Texas with brick building in background.

DARTSpace Platform Streamlines Dallas TOD Application Process

The Dallas transit agency hopes a shorter permitting timeline will boost transit-oriented development around rail stations.

May 28, 2025 - Mass Transit

Farm workers in long sleeves and hats working in a green field in Nipomo, California with small hills in background.

Without International Immigrants, the Rural US Population Would Be Falling 58%

Census data shows that population growth in rural areas is due in large part to international migrants.

3 hours ago - The Daily Yonder

Aerial view of Lake Shore Drive, eight-lane highway adjacent to lakeshore in Chicago, Illinois with city skyline in background at sunset.

Dead End: Nine Highways Ready for Retirement

The Freeways Without Futures report describes the nation’s most promising highway removal proposals.

5 hours ago - Congress For New Urbanism

Metrorail train pulling into newly opened subterranean station in Washington, D.C. with crowd on platform taking photos.

Congressman Proposes Bill to Rename DC Metro “Trump Train”

The Make Autorail Great Again Act would withhold federal funding to the system until the Washington Metropolitan Area Transit Authority (WMATA), rebrands as the Washington Metropolitan Authority for Greater Access (WMAGA).

7 hours ago - The Hill

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.