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Page added on May 22, 2013
A Mileage Tax Monitored By GPS For All N.J. Drivers?
It’s a controversial proposal: Paying for every mile you drive to cover road repairs.
While some say it’s necessary, others are saying it’s time to put the brakes on the idea, CBS 2’s Christine Sloan reported Tuesday.
It’s the one thing New Jersey can boast about – having the fourth-lowest gas tax in the nation. The money goes into the state’s transportation trust fund, paying for roads and bridges.
But what if you learned the fund is $14.3 billion in debt, and the gas tax just covers a yearly $991 million debt payment?
“The problem there is because previous administrations and legislatures raided the transportation trust fund to use that money in general funds,” said Sal Risalvato of the New Jersey Gasoline Convenience Automotive Association.
It’s what prompted the bill to repeal the gas tax and have residents pay for every mile they drive, so cars that don’t use gasoline or get better mileage pay for roads, too.
“How are you going to track that?” one driver wondered.
It turns out, with a GPS device. The concern was about big brother watching, so after opposition, the sponsor of the legislation this week amended the bill to only tax electric and compressed natural gas-powered car owners with a yearly $50 fee.
“They’re using the same roads everyone else is so they should pay the same tax,” said Susan Berowitz of Mountainside.
“Why should they be penalized for helping the environment?” added Danielle Morse of Union.
The Sierra Club agrees, with director Jeff Tittel saying, “We try to encourage people to buy fuel-efficient cars but now this is a disincentive.”
He said raise the gas tax. But with federal incentives to make fuel-efficient cars, Risalvato said there could be a mileage tax.
“Someday this could be the means,” Risalvato said.
Risalvato said some insurance companies are using mileage tracking devices and car manufacturers could build them into cars.
The bill’s sponsor, State Sen. Jim Whelan told CBS 2 that while he is for fuel-efficient cars, $50 isn’t much money when you can afford to buy a car that cost more than $40,000. Hybrid cars are exempt in his bill. Two other states have vehicle mileage tax laws, Washington and Virginia.
3 Comments on "A Mileage Tax Monitored By GPS For All N.J. Drivers?"
rollin on Wed, 22nd May 2013 12:10 pm
New Jersey is well known for tapping funds and the NJ Transportation Trust Fund Authority shows that half of the gasoline tax went into the general fund in 2012, not into the transportation fund. Solar funding was also cut and moved to the general fund last year.
So until the government can be trusted to properly appropriate funds, it should not be given any other taxes.
Since NJ is both a commuter and pass-through state, much of the traffic source is external to the state. Federal funding should be increased as appropriate.
The bureaucratic nightmare would be phenomenal, since many people also drive outside of the state. They can’t get the electronic toll system working properly, so why would one think that a more sophisticated electronic surveillance system would work?
BillT on Wed, 22nd May 2013 12:52 pm
Go for it! Be the first to find another way to skin the working poor. If there is anyone left in NJ, they are fools. I never go there anymore.
jimmy on Thu, 23rd May 2013 11:44 am
I’m all in favor of ending socialized roads. I drive countless miles to work. My brother lives across the street from his job and has no car, yet we both contribute to road funding through our taxes.
Time to end the commie road program and make the users pay. Just like any other good or service in a free country.