Charlotte Observer via Michelle Malkin-
With gas-tax revenues plummeting, the state of North Carolina is looking seriously at taxing motorists for how far they drive.
If the “road-use tax” is implemented, it would at first be simple – with the state checking your odometer annually and taxing you based on how many miles you have driven. But transportation experts say new GPS technology could allow the state to charge people different rates based on when and where they drive, in an attempt to manage congestion.
Talk of a Vehicle Miles Traveled tax has long been discussed as a necessity in a decade or so, because cars are becoming more fuel efficient, and states and the federal government are losing gas-tax revenue.
But there is now a sense of urgency about the new VMT tax. When gas hit $4 a gallon this summer, Americans sharply curtailed their driving. And when the economy cratered this fall, the driving rollback continued, even when gas prices plummeted.
The 21st Century Transportation Committee suggested that, in addition to the gas tax, motorists pay a quarter-cent for each mile they drive, with the first 2,000 miles annually free. A motorist who drives 12,000 miles a year would pay $25 – possibly due when the driver gets the car inspected.
You knew they would devise a scheme to get “their” (that is, your) money anyway. All the talk about producing more fuel efficient cars and curtailing driving to create less green house gases was so much hot air when budgetary concerns came into focus. As the gas tax is now, fewer gallons burned, fewer tax dollars earned. Good for the environment, bad for the state and federal budget. Hence the punitive Vehicle Miles Traveled Tax.
And what of the suggestion that “…new GPS technology could allow the state to charge people different rates based on when and where they drive, in an attempt to manage congestion.” Violation of privacy and civil liberties, anyone?
You know, it’s bad enough I have to pay 24.4 cents to the State of NC for each gallon of fuel that I buy. It’s bad enough that I have to take my car into a gas station annually to have some mechanic verify that my car meets NC Emissions Standards (and how do they do that exactly?) so they can send my money to Raleigh. It’s bad enough that I have to pay a tax on the value of the vehicle that I own, every year. Now I am going to have to pay at tax of .25 cents for each mile I travel as well? For a 10 mile trip, that’s about $28 a year to the State of NC, just for the privilege of driving my kids to school and picking them up, 280 days of the year.
NC Local Radio Host Matt Mittan is keeping tabs on this issue here.
14 Comments
December 17, 2008 at 10:37 am
Tough!
Why can’t they ride the school bus or walk or bike? I was guilty of driving me kids to school too, so I am also pointing the finger at myself. Let’s try to cut back on our driving. It will lower many of our taxes.
December 20, 2008 at 4:40 pm
This idea has too many flaws before it gets off the ground. For instance, most used car dealers drive a car from their lot with a dealer tag, so it is never registered. When the dealer has it inspected (and the law says a dealer only has to have a car inspected when he first obtains it, and never again for as long as it is in his inventory), chances are he’ll be exempt from the taxes.
The whole scenario is unfair. And honestly, in most cases, the cost of implementing and policing it would minimize any revenue generated.
But then, when did the state of NC ever care about spending more on an idea than it was worth?
December 29, 2008 at 12:15 pm
[...] state of North Carolina recently proposed a change in the way taxes are collected for the Department of Transportation. Instead of relying solely on the statewide gasoline tax, [...]
December 29, 2008 at 3:29 pm
[...] state of North Carolina recently proposed a change in the way taxes are collected for the Department of Transportation. Instead of relying solely on the statewide gasoline tax, [...]
December 29, 2008 at 6:44 pm
The Oregon Gas fee study proves this is just another thoughtless politician’s idea. It is NC political bureaucracy at it’s finest…lining the pockets of special interest groups at the expense of NC citizens. Political greed at it best with little concern for NC citizens.
If the current gas tax and the milages fees are likely very small (according to Oregon study) why go to all the costs involved to implement and adminstrate such a complex and vast system? The costs of implementation and adminstration, the investment in capital are all extremely high for all parties involved for such a little return on investment. It involves an extremely high cost to consumers and car manufacturers for equipment in cars (GPS), installation charges to all, computer equipment & installation charges to gas stations (POS equipment), installation and operating costs to government, high cost of testing, development, & research. I suspect the tax payer will end up paying for all these (hidden) costs forever!
Are our NC politicians that stupid to get involved in something so complicated and expensive. Are they dumb enough to go to this great expense and fee by mile program just to charge each of us tax payers $25 extra tax each year? They could simply charge each licensed driver a flat annual fee based on an equitable budget shortfall formula? Or do they think we NC citizens are dumber then they are and we will accept whatever they want to do regardless of how ridiculous the idea is? Why do they have to reinvent the wheel? Is this politician job justification? LOOKS LIKE NC politicians will reinvent the wheel so they can create more bureaucracy and waste more TAX PAYER money unless the voters of NC step up to the plate and say enough is enough. We demand good leadership and we will vote you out if you do want you what instead of what is best for NC citizens.
The gas fee simply creates more government, more expenses, and clearly violates our privacy and reduces democracy.
WHY NOT DEMAND (VOTE) OUR CONGRESSMEN TO PASS A LAW THAT LIMITS THEIR TERM IN OFFICE TO 6 YEARS…PERIOD. THIS WOULD HELP CITIZENS BETTER MANAGE NC GOVERNMENT.
I BET THIS WOULD MAKE THEM FOCUS ON BUILDING LESS BUREAUCRACY AND THINKING ABOUT BETTER WAYS TO HELP NC CITIZENS EASE THEIR TAX BURDENS YET PROVIDE NECESSARY SERVICES FOR THE PEOPLE.
It would definitely reduce or limit corruption which is a huge issue in government today.
Our NC politicians will do what they want to do until they hear enough voices from the people.
NC’s citizens will be the loosers until they wake up and speak their opinions to their representatives. Until then, politicians rule and citizens loose.
January 2, 2009 at 11:23 am
This sort of law will become simply another vehicle (so to speak) for the increase of Government excess–just one more “small” area that Government can raise tax rates in one year, and then move to another “small” area the next, leaving the ignorant hordes unaware of the continual increase of their burden.
If such a method of taxation is to be used, the original gasoline tax should be repealed by the same legislation which establishes it.
In theory, a per-mile tax on driving is a good example of a user-fee type tax system. Therefore, in theory, I like it (provided the other methods of taxation are removed). Unfortunately, in reality there are problems:
*Current per-gallon taxation allows the State to collect tax dollars from people driving through the State, rather than residing in it (using our roads in the process). There is no way to replace the taxation of non-residents on a per-mile only basis.
*Residents of NC would be charged for miles driven OUTSIDE of the State under the proposed system (regardless of the existence of a per-gallon tax). This is resoundingly unfair, and only a tax-loving Government goon would argue otherwise.
I’ll not go much in to the fact that the gasoline tax (and similar) revenue is not wholly used for roads, as it SHOULD be.
January 2, 2009 at 1:52 pm
As it stands now, Raleigh takes $172 million from the highway fund every year and puts in the General Fund. That is why we are paying twice the tax on a gallon of gas as most of our bordering states.
Keep in mind also that our government in D.C. wants to raise the tax on a gallon of gas an additional $.10.
We also have several people in D.C. that want to keep the price of a gallon of gas at $4.00 regardless of the price of a barrell of oil.
As long as we set on our hands, as we usually do, we will have no say in anything that goes on at the state level or in D.C.
January 4, 2009 at 8:54 am
I totally agree. I am considering running for public office in my NC county because I am tired of the hand-sitting that we conservatives tend to do. North Carolina government is in need of a major overhaul and conservatives are just the people to do it!
January 4, 2009 at 8:57 am
The vehicle miles driven tax was never designed to stand apart from the gas tax, hence the obvious flaws if we were to try to implement it as our only highway revenue. The plan is to tax us both ways. It stinks to high heaven, but it is coming, nonetheless. Common sense doesn’t seem to apply in Raleigh.
January 4, 2009 at 9:03 am
Agreed. agreed. agreed.
We need to take our NC government out of the hands of the Hunt/Easley/Perdue machine. Perdue rode into office on Obama’s coattails. Now we need to hold her feet to the fire. Easley should be in a federal prison. Check out Matt Mittan’s radio show and website for more on that.
January 4, 2009 at 10:07 pm
[...] state of North Carolina recently proposed a change in the way taxes are collected for the Department of Transportation. Instead of relying solely on the statewide gasoline tax, [...]
January 7, 2009 at 7:53 am
One of the main benefits of the current gas tax is that it encourages fuel efficient vehicles and fuel efficient driving. Switching part or all of the tax to a per-mile system would reward SUV owners and others who drive low MPG vehicles as their primary commuting vehicles.
The current laws on truck drivers make this problem even worse….
The mileage tax is silly, expensive, and wasteful.
February 21, 2009 at 3:03 pm
[...] a nanny state measure being championed by Democrats in North Carolina, so-called Republican Transportation Secretary Ray [...]
May 3, 2009 at 6:01 am
This may very well spell the end of my freedom.
I will smash with a hammer any tracking device placed on my vehicle. End of discussion.