Pay as You Go Plan with Gas
The push for more fuel efficient vehicles is costing the state billions in gas tax dollars. The money is used to maintain roads and bridges. Transportation officials are considering a ‘pay by the mile’ plan to make up for the lost tax dollars.
Floridians are buying less gas and paying fewer taxes at the pump. The transition to more fuel efficient vehicles is costing the state billions of tax dollars. A national plan to make up the difference by charging a mileage tax is being driven by transportation officials. Drivers hate the idea.
In order to charge by the mile, the government would have to keep track of how much driving you do. The plan would require every vehicle to be equipped with a tracking device in order to keep up with the miles you have driven. The mileage information would be downloaded every time you fill up.
Florida PIRG, a consumer advocacy group, says the plan sounds invasive.“I think a lot of people would be suspicious of that,” said a member of Florida PIRG. “I think there would be a lot of questions and I think rightfully so.”
A decline in gas tax collections isn’t the only reason the state is losing money for roads and bridges. State lawmakers have raided transportation funds and money raised from a recent increase in license and tag fees isn’t being used exclusively on roads.
Environmentalists say the pay by the mile plan would water down the cash incentive of owning a fuel efficient vehicle.
Drivers pay 50 cents in taxes for every gallon of gas bought in Florida. Another solution to recover lost revenues is to simply raise the gas tax.
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