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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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