Skip to Content
Streetsblog New York City home
Streetsblog New York City home
Log In
Streetsblog

What Can We Learn from Oregon’s Mileage Tax Experiment?

A few weeks ago, the Obama Administration had a rather embarrassing public difference over the idea of a mileage tax to replace the gas tax. It's certainly one of the most contentious notions out there, but most of the debate is based on hypotheticals. Now, as reported by Streetsblog Network member Worldchanging, the Oregon Department of Transportation has released the results of a 2006 experiment in a pay-at-the-pump mileage-based system, and we have some data to talk about. Adam Stein writes:

399353063_9c8e38b119_m.jpgPhoto by Entropyer via Flickr.

The Oregon Department of Transportation (ODOT) has compiled a 100-page report on the experiment that covers a lot of ground, but basically describes the trial as a roaring success. Note several features of this system:

  • Overhead is low. Because the mileage tax piggybacks on the existing gas tax collection system, it’s easy and cheap for the state to administer.
  • Payment is simple. From the driver’s perspective, the mileage tax differs little from the gas tax, other than the fact that their gas station receipts contain interesting information on miles driven.
  • Privacy is protected. The state only gets odometer information, not information about vehicle location.
  • Evasion is difficult. Even if you tamper with the GPS receiver, you’re still going to pay the gas tax.
  • Phased implementation is possible. Oregon doesn’t foresee a complete changeover to mileage taxes happening until 2040. This is a bit too slow for my taste (I really hope gas stations don’t exist in
    2040), but the point is that gas taxes and mileage taxes can happily coexist as the vehicle fleet turns over.

Technically, the system worked. Just as importantly, public acceptance was high. 91% of [self-selected] test participants preferred the system to paying gas taxes.… Before the experiment began, media portrayals of the system were almost uniformly negative -- and inaccurate. By the middle of 2006, media coverage ranged from neutral to positive, and were far more accurate. Citizen comment
reflected this broader trend. ODOT concludes, “Effective communication can lead to public acceptance.”

Elsewhere around the network: Sustainable Savannah has a sheriff's shocking defense of high-speed driving on rural roads; Twin Cities Streets for People links to a CNN report on the national mass transit crisis that uses Transportation for America's excellent map of service cuts around the nation; and Trains for America notes that Japan is committed to staying out in front on high-speed rail.

Stay in touch

Sign up for our free newsletter

More from Streetsblog New York City

Here’s Everything Wrong With the Judge’s Order to Rip Up the 31st Street Protected Bike Lane

A Queens judge overstepped her jurisdiction when she ordered the city to rip up a protected bike lane in Astoria, experts said.

December 9, 2025

MTA Still Won’t Embrace Open Gangway Subway Cars

The see-through cars have been standard across the globe for a generation, but to the MTA, it's still untested technology.

December 9, 2025

How Much Will New Yorkers Pay For Trump’s Penn Station Redevelopment Scheme?

New Yorkers could wind up paying twice for the new Penn Station: once when Amtrak comes asking for money and then when a private developer makes their money back from the project.

December 9, 2025

Tuesday’s Headlines: Clearing the Air Edition

We've been clear that congestion pricing is working. Turns out, congestion pricing was, too! Plus other news.

December 9, 2025

NYPD Finds Mysterious Corpse in Car With Illegal Tints Parked at a Hydrant Near Stationhouse

The discovery is a gruesome demonstration of the NYPD's systemic failure to enforce parking rules around its own station houses.

December 8, 2025

Who Rides on the Sidewalk? To NYPD, Just Blacks and Hispanics

The NYPD has ramped up its enforcement against cyclists for squeezing pedestrians, but in a very suspect manner.

December 8, 2025
See all posts