A NEW rule has come into force that will see certain drivers pay for the distance they travel.
Road users face a choice on how they want to make their payments.
They can either pay $50 per a year, or $8 per 1,000 miles they travel.
If they take the second option, then the amount is capped at $50.
The rule, which specifically targets electric vehicle drivers, came into force across Hawaii in 2023.
Not all drivers are forced to take part in the mileage program.
But, the law will be tightened in 2028 as all electric vehicle drivers will be forced to pay up.
And, drivers will be required to have odometers read.
Such programs could be rolled out across other states.
In Oregon, a proposal is being touted as a way of filling a $300 million hole in the transportation budget.
Tina Kotek, the state’s governor, suggested one approach could be a EV charge that is 5% of the gas tax.
The gas tax in Oregon stands at 40 cents per gallon.
Critics of the measure suggest it could put drivers off from switching to electric vehicles from gas or diesel cars.
Utah is another state that has rolled out a pay-per-mile program.
Drivers just have to pay one cent per mile, as opposed to having to pay a yearly fee.
Officials in Vermont are also looking to plug a hefty $600 million black hole.
One such measure touted by The Vermont Transportation Fund is a mileage fee.
Phil Scott, the Vermont governor, unveiled plans in January where he didn’t want to hike taxes.
Electric vehicles vs gas
Pros and cons of EVs vs gasoline-powered vehicles
EV PROS:
- Convenient (when charging at home)
- Cheaper (depending on state or city)
- Cheaper maintenance, due to lack of mechanical parts
- Great for commuting
- Reduced CO2 emissions
- Federal and state tax incentives
- More performance (speed, handling – depending on the make and model)
EV CONS:
- Higher initial cost
- Higher insurance rates
- More frequent tire and brake replacement intervals
- Higher curb weight (thus causing more rapid wear on crucial parts)
- Low resale value
- High depreciation rates
- Lack of charging infrastructure
- Unreliable public charging (related: slow charging times)
- Poor winter and summer performance
- Lack of clean energy alternatives means more “dirty energy” from coal and nuclear sources
- Range anxiety
GAS PROS:
- Highly developed refueling infrastructure
- Fast refueling
- Cheaper insurance rates, depending on make, model, and configuration
- Established repair industry
- Lower initial cost
- Higher range before refueling, especially with hybrids
- Many manufacturers produce nearly emission-less engines
- Cheaper refueling, depending on the location
GAS CONS:
- Finite resource (related: heavy dependence on petroleum)
- Carbon emissions/greenhouse gases
- Higher repair costs
- Higher insurance rates, depending on make, model, and configuration
- Varying costs at the pump, depending on state, city, and county
Source: Car & Driver, Perch Energy, AutoWeek
Officials estimated that a new electric vehicle fee could see another $5 million brought into the state’s coffers.
Lawmakers in California are also looking at similar programs.
If it becomes a reality, it would target drivers who don’t pay gas tax.
In 2024, California had the highest gas tax at a rate of 68.1 cents per gallon, as per The Tax Foundation.
Illinois and Pennsylvania make up the top three states with the highest rates.
Alaska had the lowest gas tax rate out of all states, according to The Tax Foundation.
This is because the rate has largely remained untouched for more than 50 years.
