I received a Motor Trend article on this topic this morning. I am in a unique position, as I own one gas guzzler and one EV. I just paid an extra $200 to the State of Texas for renewing my EV registration. This is intended to be an economic, not a political topic:

https://www.motortrend.com/news/california-gas-tax-per-mile-use-fee-pilot-program/?eml=organic%3Aeml%3Abrz2%3A20240523%3Acalifornia%3Aarticle%3ANBC&utm_source=braze&utm_medium=emaileditorial&utm_campaign=NBC

What is the "correct" way to fund our highways? Different states have come up with different solutions. To me, the ideal method probably starts with a direct user fee based on usage and expected damage.

California probably has it partially right - big-brothering the actual miles driven to determine proper allocation of taxes. The other big element is usually tied to the weight of the vehicle or even the types of tires(?) which can make wear and tear vary. Heavier cars (and of course trucks, tractors, 18-wheelers, etc.) cause more road wear, and those drivers should pay a larger share.

While I didn't like the extra $200 fee, I feel it's directionally correct on average, especially since EVs are heavier and cause a bit more damage, in theory. I don't see people going for the mileage tracker device in our cars out of civil liberties concerns (once the state has the data, it could be used for other undisclosed purposes).

Why don't we just have an odometer reading annually, and tax based on that mileage difference? Add in a surcharge for every pound of vehicle weight, and off we go? Is it because of odometer manipulation concerns? Good weight vs. bad weight? Politics? Discontinuation of annual vehicle inspections?

Thoughts?

Why doesn't Congress subsidize Hybrids instead of EV's? No charging stations needed, better gas mileage, transition vehicles into EV's when the technology/support systems catch up.

OldArmyCT said:

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Why doesn't Congress subsidize Hybrids instead of EV's? No charging stations needed, better gas mileage, transition vehicles into EV's when the technology/support systems catch up.

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As a free-market libertarian, I am generally opposed to any subsidies.

However - you bring up a great point, and a loophole. I guess Texas is subsidizing hybrids vs. EVs and ICEs, at least as it relates to registration fees. They are taxed like ICE cars (pay at the pump), and since they generally get a lot better mileage than pure ICE cars, are hypothetically under-paying road maintenance per mile driven (and damage done).

My recommended approach would solve this inequity, I think. Hybrids would still perform favorably overall economically, as the small added weight is probably more than offset by the better mileage (depending on up-front cost differential). But the road tax would be calculated using the same method as EVs or ICE.

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Why don't we just have an odometer reading annually, and tax based on that mileage difference? Add in a surcharge for every pound of vehicle weight, and off we go? Is it because of odometer manipulation concerns? Good weight vs. bad weight? Politics? Discontinuation of annual vehicle inspections?

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I like this idea. I think you could get rid of fuel taxes and vehicle sales tax as well since they're different in every state. Have drivers track mileage by state and vehicle and remit payment annually. The formula should be miles x gvwr x fee so the big trucks pay their part as well.

TxAg20 said:

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Why don't we just have an odometer reading annually, and tax based on that mileage difference? Add in a surcharge for every pound of vehicle weight, and off we go? Is it because of odometer manipulation concerns? Good weight vs. bad weight? Politics? Discontinuation of annual vehicle inspections?

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I like this idea. I think you could get rid of fuel taxes and vehicle sales tax as well since they're different in every state. Have drivers track mileage by state and vehicle and remit payment annually. The formula should be miles x gvwr x fee so the big trucks pay their part as well.

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Another good point. I'm not certain how big trucks fit in - - I know they use more fuel, so pay more at the pump than smaller cars, but I am unclear on how their registration process taxes weight and other wear and tear. Then again, if Tesla big rigs ever catch on, you may have the same issues with 18-wheelers as with cars.

I think one reason people don't like the idea is a fear of insurance companies coming after them for fraud by underreporting how much they drive. If you report to the government, insurance companies will want a copy of that report. Not sure how valid a fear that is though.

Do insurance companies really care how many miles you drive? That data is available on most vehicles by vin through carfax anyway.

These were all points brought up last session and the $200 is where they ended up. The truck lobby stopped any additional fees on commercial vehicles, but I am pretty sure it will be brought up again. Right now our roads are funded from Prop 1 and Prop 7, oil and gas tax and other taxes on cars and such.. it is funded for next 10 years..