News & Observer | newsobserver.com | Guinea pigs wanted for taxes

Published: Dec 13, 2007 12:00 AM
Modified: Dec 13, 2007 02:22 AM

Guinea pigs wanted for taxes

System would replace gas tax; volunteers to get mock bills

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Paying by the mile

Here's how a vehicle mileage tax might work in the future:

Your car is equipped with a receiver that uses GPS signals to track your location. A simple on-board computer uses GIS mapping data to determine which state and local jurisdictions you're driving in.

Each car and truck is assigned to a vehicle class that determined the per-mile tax rate. Governments might decide, for example, to set the highest rates for heavy trucks -- and the lowest for low-polluting and alternative-fuel cars.

Like a taxicab meter, your computer converts miles into pennies and keeps track of your rising tax bill.

To protect your privacy, the on-board computer stores only the total taxes owed to each government jurisdiction. It does not record travel times and routes.

Once a month, your car makes a wireless phone call and uploads your mileage tax charges to a central billing system, which acts like a credit card agency. It pays your taxes to each government agency and collects the total from you.

(Road User Charge Study, University of Iowa Public Policy Center)

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A few hundred Triangle drivers will be recruited next year to road test a satellite technology system that might be used one day to replace the gas tax with a tax on every mile we drive.

The $16.5 million Road User Charge Study will enlist 2,700 drivers in six states to determine whether Americans would accept the idea of paying by the mile, instead of by the gallon.

The 21st Century Transportation Committee, a statewide advisory panel, was briefed Wednesday on the mileage tax study and on new technology that will make it easier in coming years to collect highway tolls. The committee is looking for new ways to pay for North Carolina's road and transit needs.

"In the future, all of your roads are going to be funded by tolling or vehicle mile taxes," said Matthew B. Click, a Florida state turnpike official. "Roads are a transportation utility. They are no different from water or sewer or anything else."

Former state Rep. George Miller of Durham, a committee member, said he worried that drivers would find it hard to change their habits.

"I like my car," Miller said. "I like driving where I want to go."

The University of Iowa Public Policy Center is expected to start recruiting 450 Triangle drivers for the mileage study in early 2008. The schedule has not been announced.

Kevin Leibel of Chapel Hill-based Innovation Management, which will oversee the study in the Triangle, said volunteers' cars will be fitted with GPS and computer hardware to track the miles they travel through each state and local government jurisdiction.

Each month, they will receive make-believe bills showing what federal, state and local taxes they would owe if they were taxed by the mile.

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