Oregon Starts Mileage-Based User Fees

Yesterday, the Oregon Department of Transportation began accepting applications from volunteers willing to switch from paying gas taxes to mileage-based user fees. The experimental program is limited to 5,000 volunteers and apparently the applications are accepted on a first-come, first-served basis.

Oregon’s gasoline tax is 30 cents a gallon, so if your car gets 30 miles per gallon, you currently pay about a penny per mile. The initial mileage-based fee is 1.5 cents per mile, the same as if your car gets 20 miles per gallon. It will be interesting to see if most of the people who sign up drive gas guzzlers that get less than 20 miles per gallon.

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