South Carolina Motorcycle Rights Association

Oregon Considering a “Pay by Mile” Gas Tax

Oregon recently started a program that will explore a new “pay by the mile” funding method for transportation infrastructure. Citing dwindling funds for transportation fixes because of electric cars and more fuel-efficient vehicles, Oregon’s gas tax doesn't capture the amount of money it once did. So instead, OReGo (as the program is known) will collect 1.5 cents a mile from the all-volunteer fleet of participants.

The OReGo program is testing to see if a per-mile fee is a feasible replacement of the state gas tax which in Oregon is $0.4947 a gallon. By this formulae, driving about 30 miles and paying 1.5 cents a mile would be roughly the equivalent of paying the current Oregon gas tax. Oregon has been experimenting with alternative sources of revenue collection for vehicles for some time now, and while this initiative is a volunteer program at this point, it could catch on.

Personally I would rather see an increase in the federal gas tax, as it would be the most cost effective revenue raiser. Why? Consider this scenario. The federal gas tax currently is 18.5 cents a gallon. The state with a gas tax closest to the federal rate is New Jersey at $0.329 a gallon. The highest state gas tax is in Pennsylvania at $0.70 a gallon, thus making the average state gas tax in the country $0.488 a gallon. While revenue raised by the federal gas tax goes to fund transportation and infrastructure projects, a good portion of state-raised gas tax revenue ends up funding other programs not related to transportation or infrastructure.

With the deterioration of the infrastructure and the lack of an increase in the gas tax, alternative sources of cash are in high demand. It’s possible that this is not the last we will see of this sort of program.

Federal Highway Bill Funding Falling Short

The highway bill funding is set to run out at end of this month with no real replacement in line. The “how to” portions of the bill are nearing completion, but the “pay for” portion of the bill remains elusive. Because the current funding mechanisms are insufficient for the bill’s needs, more revenue needs to be raised at the federal level. To compensate for this shortfall, the federal gas tax (or user fee as some see it) needs to be raised. The federal gas tax has been at the same level since 1993 and is not indexed for inflation, so what was one dollar in 1993 is now $1.65. Raising the gas tax, however, is and always will be politically unpopular. Congress is juggling a few options to pay for the bill, but all fall short of the necessary dollars. Congress is out of gimmicks, and the reality is that they need to raise the gas tax and be done with it.

Comment Period Still Open

<img width="100" height="98" data-cke-saved-src="http://MotorcycleRidersFoundation.wildapricot.org/Resources/Pictures/mrflogo.jpg" src="http://MotorcycleRidersFoundation.wildapricot.org/Resources/Pictures/mrflogo.jpg" align="left" style="margin-bottom:7px;margin-left:7px;margin-right: 7px;margin-top:7px" '="" title="" border="0" v:shapes="_x0000_s1026">The comment period for the proposed motorcycle helmet regulation changes is still open, and you should join your fellow motorcyclists and let the National Highway Traffic Safety Administration (NHTSA) know that their proposed rules for mandatory helmet thickness standards is not a great idea. Mandating the construction standards instead of performance standards will not improve safety whatsoever. Find the comment page at www.regualtions.gov and search for motorcycles. The more comments we can generate, the better chances we have at beating back this new rule.