CARRIER VMT OUTDATED MEANING DRIVERS

The project, which followed 299 volunteer motorists in 285 vehicles over the course of 12 months, found that 91% of participants would agree to pay a VMT tax instead of a gas tax. In 2007, Oregon debuted a pilot project that kicked off a small wave of states experimenting with VMT taxes. While a tax on miles driven may sound foreign to many, the U.S. The infrastructure bill doesn’t specify exactly what the projects would look like, but that could allow the government to experiment with a variety of VMT tax models. The Biden administration’s proposed VMT tax pilot project would be the first federally backed initiative of its kind. And because the gas tax hasn’t been sufficient to cover the costs of transportation infrastructure for at least the past decade, everyone is paying for our roads, even those who don’t drive on them. The adoption of electric vehicles and other alternative fuel vehicles, which has been called for by Biden himself, has also limited use of the pumps. For one, people are driving less, and when they do drive, they’re more efficient than ever – fuel economy reached a record high in 2020 at 25.7 miles per gallon. Since 2000, fuel tax revenues have declined significantly due to a confluence of factors. But while a VMT tax program might help the nation’s faltering transportation infrastructure, it could have some negative implications for the ride-share industry.

CARRIER VMT OUTDATED MEANING DRIVERS

The administration’s $1 trillion infrastructure package proposes allocating a total of $125 million over five years to test pilot programs for a road usage fee under which drivers are taxed by miles traveled. Just last week, the Highway Trust Fund, which supports road construction and mass transit, ran out of money, saved only by a 30-day extension of funding.įor the Biden administration, the answer could be in a vehicle miles traveled (VMT) tax.

government hasn’t raised the federal tax rate of 18.4 cents per gallon since 1993, and since 2008, policymakers have been drawing from nontransportation funds like the general fund to pay for transportation infrastructure because the gas tax simply isn’t bringing in enough money. Support it or oppose it, the federal excise tax on gasoline, more commonly referred to as the gas tax, isn’t getting it done.

Carrier vmt outdated meaning