Oregon Drivers: Get Ready for Pay-Per-Mile Tax
13 Aug 2015When buying fuel for your vehicle, you usually pay a per-gallon, flat tax. However, in Oregon, a new charge program in the works as of July 1 will change things. Instead of having to pay the normal fuel tax, you would pay a flat tax for each mile you drive.
The point of this program is to fuel cars more efficiently to offset the money that is being lost in fuel taxes. OReGo, a voluntary charge program, opens its doors to 5000 drivers this July.
Being launched by the Oregon Department of Transportation, this program will allow drivers who are participating to be charged 1.5 cents per mile and have their mileage recorded. Their distances will be tracked by using different tracking methods ranging from an Odometer device to a GPS tracking device to a daily diary.
The state’s Department of Transportation and also spokeswoman for the road usage charge program, Michelle Godfrey, states that GPS tracking units will provide the best solution and prove to be a hassle-free option. The drivers will be credited to offset gas tax at the pumps.
The reality, however, is that for some people living in Oregon, who are opting into OReGO, particularly the people who are driving fully electric vehicles, this would mean having to fork out lots more money. It was calculated by the state that the average driver in Oregon drives almost 12,962 miles a year.
Two cars were compared in Oregon driving that distance; a 2014 Ford F-150 and a 2014 Toyota Prius. Through the fuel tax model, you can clearly see that the F-150 shelled out more money to the state ($216.03) when compared to the Prius ($77.77).
However, if they both opted in OReGO, the same amount ($116.66) would be paid by both to the state’s highway fund which would result in the F-150 saving money and the Prius driver having to fork out close to $200 more each year.
Godfrey says it might come as a shock initially to see how much they would actually be paying, however, she believes it will empower drivers and help them determine how they are driving and if some trips are even necessary.
If you are thinking to yourself, “Why would anyone want to voluntarily give more money to the state?” the answer, according to the state, is that we all require good infrastructure; poor roads can damage vehicles, particularly lighter vehicles. Electric vehicle drivers as well as fuel-efficient car drivers were polled on this question and it came back that they would pay more to have better roads.
Godfrey states that over 1600 have signed up so far.
This program is not permanent, however state officials are placing their bets that other states are indeed watching and 18 states are already looking into the same type of program.
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