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Oregon to Implement Per-Mile Road Tax

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Oregon to Implement Per-Mile Road Tax

Oregon residents with electric vehicles may soon be facing a per-mile tax.

In a bid to find ways to fund road maintenance, the state will be offering its drivers a choice to either pay the gax tax at the pump or pay 1.5 cents per mile driven. Oregon’s Department of Transportation has partnered with road-tolling company Sanef ITS Technologies America, Inc. and connected car company Intelligent Mechatronic Systems, Inc. to launch an initial program that will have as many as 5,000 registered vehicle owners. Legislation is limiting the participation to 5,000 volunteers initially so that it can “see how the public would accept the program.”

SEE ALSO: California Considering Vehicle-Miles-Traveled Tax

The program will provide a device that plugs into a vehicle’s on-board diagnostics port to gather mileage data similar to usage-based insurance programs. Drivers that participate in the program will still pay tax at the gas pump but at the end of each month, the data will be compared to the 1.5-cent-per-mile tax owed against what the driver paid in gas taxes. Those results will be sent over to the Department of Transportation and participants will either receive a rebate or an invoice for per-mile taxes due.

The per-mile tax is targeting electric vehicle owners who aren’t paying any taxes to drive on a daily basis as states look for ways to raise funding for road maintenance. Over 10 states, including Florida, are drafting legislation for similar programs or considering trial runs like Oregon.

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