Oregon to Implement Per-Mile Road Tax

Jason Siu
by Jason Siu

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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Jason Siu
Jason Siu

Jason Siu began his career in automotive journalism in 2003 with Modified Magazine, a property previously held by VerticalScope. As the West Coast Editor, he played a pivotal role while also extending his expertise to Modified Luxury & Exotics and Modified Mustangs. Beyond his editorial work, Jason authored two notable Cartech books. His tenure at AutoGuide.com saw him immersed in the daily news cycle, yet his passion for hands-on evaluation led him to focus on testing and product reviews, offering well-rounded recommendations to AutoGuide readers. Currently, as the Content Director for VerticalScope, Jason spearheads the content strategy for an array of online publications, a role that has him at the helm of ensuring quality and consistency across the board.

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  • Pywaket_1 Pywaket_1 on Mar 11, 2015

    Well, isn't that special! So now anyone driving a vehicle that gets less than 20 MPG will pay less tax. Since the Oregon gas tax is $0.30 per gallon, the Hummer driver getting 10 MPG will now pay 1.5 cents a mile instead of the 3 cents they used to pay. If you assume they drive 15000 miles per year, their tax will be reduced from $450 a year to $225. Way to go, Oregon! Subsidizing the gas guzzlers and penalizing the people who buy small, efficient cars.

    • Rex Rex on Jul 03, 2015

      Reminder, it's a Democrat controlled state.

  • Rex Rex on Jul 03, 2015

    People in Oregon should WAKE UP and quit voting Democrat. Democrats don't want to help you, they want to control you.

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