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Placebook: Is North Carolina Ready for A Vehicle Mileage Tax?

My car parked. Will it be parked more because of potential new VMT?

My car parked. Will it be parked more because of a potential new VMT?

Yesterday I linked to an article that mentioned that the NC DOT has decided to study the implementation of a Vehicle Mileage Tax (VMT). I thought it was an April Fools joke. I was wrong. For those of you out of the loop, this is a tax collected by a meter either placed on your car or along roadways to register how many miles you drive. You then pay taxes based on how much you drive. This would replace the fuel tax that we currently pay at the pump and raise more money for transportation needs.

While this has become the preferred method of taxing drivers of many of my urbanist and good governance friends, I'm concerned that we as a state just aren't quite ready to make the switch. First of all, we don't have reasonable alternatives to driving in 90% of the state. The kinds of folks who would avoid this tax by not driving tend to be affluent or at least not burdened by having an extra or higher tax, work at home, or within walking distance from their jobs. Yet, many of the jobs that pay low, such as restaurants and warehouses, as well as  many offices that pay a normal wage and require daily attendance, require a significant drive. While gas prices would drop under this plan, the taxes would be shifted and possibly increase under this plan, causing pain to even those who are somewhat well off, but not able to absorb a higher tax bill.

Which wouldn't be so bad, if all that new tax money went to creating and strengthening transit, putting in more sidewalks and even to incentives for offices and other non-industrial grade businesses to move into easily walkable areas, so that people don't have to drive as much. I however, don't trust the state government in its current iteration to funnel the money properly. The article alludes to the state government considering this tax only because we are in budget shortfall for our current vehicle-related tax methods. Also, we are just adjusting to toll roads, and that's in the populous and relatively affluent cities of the state. This tax could essentially turn every road into a toll road, in a time where salaries and wages are not keeping pace with our expenses. Things could change, as this measure is studied and tested, but right now, if it were implemented today, I believe it would be an extra burden.