News-Record.com

Thursday's No. 1 editorial.

It may be a far piece down the road, but a proposal to replace gas taxes with a road-use tax is worth a test drive.

And 200 volunteers in the Triangle will join drivers in five other states to get a handle on how a new approach to raising money for road repairs and construction might work. For their efforts, they’ll be paid $895 each.

Before the experiment begins, global positioning units that cost about $50 will be installed and track how far and where each test vehicle has been driven. Once a month, participants will get fake state and federal bills for their accrued mileage, based on the EPA fuel-economy ratings for their vehicles.

For the sake of fairness, the tax rate will be higher for large trucks than for hybrids. And the test compensates by including a credit for fuel purchases based on vehicle miles per gallon.
Sounds complicated and a bit contrived, but a new taxing system to raise money for highway costs is inevitable, although it could be 20 years away. Gas-tax collections already feel the pinch as new cars get more miles per gallon and high gas prices impact miles driven.
The outlook becomes even cloudier as more hybrids with smaller engines take to the nation’s highways. Should plug-in electric cell cars and fuel-cell models reach their potential, the situation could get even dicier.

But fairness is critical if a road-use tax is to gain traction. First, federal and state governments must carefully set rates for different vehicles. Also, drivers must be assured that governments don’t use global positioning devices as an excuse to track their whereabouts. Proponents say exact times and locations won’t be recorded.

One positive result is that under a user plan, road taxes go to the state where the miles are logged. For example, an out-of-state tourist headed to the North Carolina coast would be taxed on miles driven here, no matter where fuel was purchased.

A new approach must be found because revenue necessary to shore up the nation’s transportation infrastructure lags far behind what’s needed.

There are other options. Toll roads can be a revenue source, but they amount to double taxation if motorists have paid a fuel or road-use tax. And impact fees directed at those who develop land or live in areas served by new roads can stunt development.

On the downside, mileage taxes don’t address environmental issues such as air pollution or road congestion. Single-occupancy car use, in all probability, will continue to prevail.

Even so, a taxing alternative for highway needs will have to be found as gas-tax revenues decline. While there may not be a simple solution, tests like the one set for December should help provide answers.