TELECOM Digest OnLine - Sorted: CA DMV Chief Backs Tax by Mile

CA DMV Chief Backs Tax by Mile

Monty Solomon (monty@roscom.com)
Tue, 30 Nov 2004 09:30:24 -0500

New appointee has advocated a levy based on how much and where
motorists drive. Idea is gaining support, but privacy advocates worry.

By Robert Salladay
Times Staff Writer

SACRAMENTO - Gov. Arnold Schwarzenegger on Monday appointed a new
Department of Motor Vehicles director who has advocated taxing
motorists for every mile they drive -- by placing tracking devices in
their cars.

The idea would mean a significant overhaul of how California collects
taxes to maintain its often-crumbling roads. Under the plan, the state
gas tax -- now 18 cents a gallon -- would be replaced with a tax on
every mile traveled by each car and truck.

The notion has not been endorsed by Schwarzenegger but is gaining
acceptance among transportation and budget experts. As Californians
drive increasingly more fuel-efficient cars, state officials are
alarmed that the gasoline tax will not raise enough money to keep up
with road needs.

Charging people for the miles they drive also worries some owners of
hybrid cars, because it could wipe out any gas-tax savings they now
enjoy.

Dan Beal, managing director of public policy for the Automobile Club
of Southern California, said altering the system would remove one
incentive to buying new-technology hybrid cars like the Toyota Prius,
because its owner would pay the same fuel tax as a Hummer owner.

http://www.latimes.com/news/local/la-me-dmv16nov16,0,5985536.story

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