Oregon drivers have done such a great job reducing their dependence on fossil fuels that the state isn't able to raise enough money through a gas tax to keep its roads in good condition.  In response, Oregon may impose America's first pay-by-the-mile tax.

The AP explains, "Oregon is among a growing number of states exploring ways to tax drivers based on the number of miles they drive instead of how much gas they use, even going so far as to install GPS monitoring devices in 300 vehicles. The idea first emerged nearly 10 years ago as Oregon lawmakers worried that fuel-efficient cars such as gas-electric hybrids could pose a threat to road upkeep, which is paid for largely with gasoline taxes."

According to the Los Angeles Times, "A state task force will look at equipping every new vehicle in Oregon with a Global Positioning System to record every mile driven and where. Motorists would pay at the gas pump based on how much they drove, no matter how fuel-frugal their vehicle."  The plan is far from becoming law -- "it still requires legislative endorsement and the full details could take several years to work out," -- but Governor Ted Kulongoski (D) used mileage-tax calculations in the 2009 budget he submitted to lawmakers last week, indicating that authorities may be planning to move toward the system very soon.

The Times notes, "While Oregon appears to be out in front in looking at a mileage fee, several other states, including Ohio, Pennsylvania, Colorado, Florida, Rhode Island, Minnesota and Texas, have also expressed an interest in phasing out the gas tax in favor of charging motorists for how much they drive."

The idea has critics.  Autoblog notes, "In addition to the substantial privacy issues that would raised by such a move, there's a question of whether a flat mileage tax would blunt the move to energy-efficient vehicles -- the gent in the Prius might not be happy about paying the same as the gent in the F-250 Super Duty."

But increasingly, analysts believe that something must be done to raise money for road upkeep in many states.  The AP notes, "The National Commission on Surface Transportation Infrastructure Financing is considering calling for higher gas taxes to keep highways, bridges and transit programs in good shape."  The mileage tax alternative may even go federal. "A congressional commission has envisioned a system similar to the prototype Oregon tested in 2006-2007."

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