1984 may have come and gone without government ever using all the "Big Brother" technologies envisioned by George Orwell. However a growing chorus transportation advocates seem to be channeling the author with their plans for a "Vehicle Miles Traveled" tax or VMT. The tax would require a GPS device or similar technology be located in all cars so that governments could collect data on the number and location of miles traveled.
The VMT functions as a kind of virtual toll booth using a GPS system. Tax rates would vary depending on the location and time of travel. For example, drivers might face higher mileage toll rates at different times or when driving on congested roads. Centralized collection would transfer data to a center that sends periodic billings to the motorist. Alternatively the GPS data would be "downloaded" each time drivers fill up at a gasoline station.
Sound far fetched?
Last February, the National Surface Transportation Infrastructure Financing Commission recommended that a VMT tax system be implemented by 2020 to replace the federal gas tax. The Commission had been established by Congress in 2005 to study on Highway Trust Fund. In response to the proposal, President Obama's Transportation Secretary Ray LaHood called the Commission's ideas: 'The kind of out-of-the-box stuff we need to be thinking about."
According to VMT advocates, the problem with the gasoline tax is that it is not going up fast enough because of political resistance. They note that inflation has eroded purchasing power of the gas tax proceeds since the last increases. Maryland's 23.5 cent per gallon, which is largest source of revenue for the state's Transportation Trust Fund, has not been changed since 1992. The VMT advocates also worry that better gas mileage will further reduce the money available to government to spend.
Proposals to replace gasoline taxes with a VMT are not just appearing at the Federal level. Oregon lawmakers are currently considering a proposal from Governor Kulongoski to launch a statewide pilot program implementing a VMT tax to ultimately replace the Oregon's 24-cent per gallon gas tax.
Now here in Maryland, the Greater Baltimore Committee has been "exploring" the idea as an alternative to the state's gas tax. The group issued a report in late May which, while falling short of endorsing the VMT, cited its growing "traction" as an alternative to Maryland's gas tax. (See and See )
The Greater Baltimore Committee describes itself as an "organization of business and civic leaders dedicated to strengthening the Baltimore region's business climate." Its membership is made up of over 500 businesses, nonprofit organizations, and educational and civic institutions located in Baltimore City and Anne Arundel, Baltimore, Carroll, Harford, and Howard counties.
According to Donald Fry, the Greater Baltimore Committee President "Maryland's current system of paying for transportation infrastructure is experiencing serious funding inadequacies. Our state now has a more than a $40 billion backlog of needed highway, transit, port, and airport projects that are planned, but not funded."
Fry, by the way, was selected by Governor O'Malley last December to chair the state's Video Lottery Facility Location Commission. The Commission is responsible for reviewing the bids of developers seeking to build slots parlors.
Efforts to place a speed camera referendum on the Maryland ballot may have failed to collect enough signatures. However speed cameras are now looking like just one of the many way some people are looking to tax drivers more.
Mark Uncapher
Montgomery County Republican Chairman
MCGOP CONVENTION!