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A BIZARRE new plan could see drivers face a surcharge for every mile they drive – with further fees punishing those with certain vehicles.
In recent times, revenue from the fuel tax decline has seen legislators search for new ways to fund transportation projects.
Maryland has recently finished a pilot program that tested a new highway-use fees system[/caption]
The proposed new bill works by assuming Maryland drivers average 11,245 miles per year[/caption]
Highway use fee would range from $5.83 to $182[/caption]
This saw a four-month pilot program recently tested in Maryland, leading to a bill being put under consideration in the General Assembly.
It could see a highway-use fee come in, offering drivers the option to participate in a voluntary Mileage-Based User Fee (MBUF) program.
Speaking to WMAR-2 News, Trish Hendren, the executive director of the Eastern Transportation Coalition, said: “This legislation would replace the newly passed EV registration fee, that surcharge, and would also include those vehicles that are considered high efficient vehicles, which is above 25 [miles per gallon].”
Lawmakers have already passed an annual $125 surcharge for electric vehicles, but the proposed bill, called HB1457, will aim to repeal the surcharge and replace it with a highway use fee.
A similar model is already adopted in Virginia, with drivers of vehicles with a fuel economy exceeding 25 mpg paying a highway use fee based on their vehicle’s efficiency in addition to annual registration fees.
This fee ranges from $6 to $128 annually.
Using data from Maryland’s passenger fleet, Hendren’s team estimates that 42% of passenger vehicles achieve 25 mpg or higher.
She added: “If you have an older, less fuel-efficient vehicle, it may just be a couple dollars.
“But if you have a newer, very fuel-efficient car, it could be at that higher end of that scale.”
HB1457 works by assuming Maryland drivers average 11,245 miles per year, meaning the highway use fee would range from $5.83 to $182.
However, motorists can opt out of paying this fee if they participate in the mileage-based user fee program.
Hendren said: “That choice is, do you want to pay an annual flat fee, or do you want to just pay for the miles you drive?
“And a lot of people maybe don’t drive as much as the average Marylander, and so they’re thinking, maybe I’ll do that. If I drive less, I’ll pay less.”
But if HB1457 is passed, the highway use fee would be in addition to the fuel tax – but only for drivers with a fuel economy of 25 miles per gallon or more.
On this, Senator Justin Ready has said: “If it was ever enacted, it would not be in lieu of a gas tax but would be on top of.
“That’s because that’s what Maryland tends to do, is add taxes on top of other taxes.”
Ready is also concerned about privacy, as participants in the test program were faced with options to track their mileage – including odometer readings without GPS capabilities.
Ready added: “I don’t want the government knowing how far I’m driving.
“I don’t think that’s any of the government’s business.”
He has already sponsored SB557 – which would prevent the state or any local jurisdiction from imposing a vehicle-miles traveled tax.
Ready also had alternatives in mind.
He said: “The Transportation Trust Fund has a problem with funding, because over half of it goes to subsidize mass transit systems that nobody uses and that don’t recover their fare.”
When asked if he wanted to see transit riders pay more, he said: “They used to have an automatic escalator on transit fares, just like we have on our gas tax.
“But the General Assembly in 2023 repealed the automatic escalator on fares, but not on the gas tax, so I would like to see fares keep pace, not 100% because some subsidization is necessary for mass transit, but for us to be recovering less than 10% of the cost with fares is ridiculous, and that needs to change.”
Hendren understands that the concept of a mileage-based user fee is unfamiliar.
What’s more, no one wants to pay more, but it comes down to use and fairness.
She said: “I think the end goal is acknowledging that the fuel tax after 100 years is not going to be our sustainable, reliable transportation funding source, so this legislation is a step towards a new way of funding transportation.”
Currently, four states offer a voluntary mileage-based user fee program – with some 30,000 drivers enrolled in Virginia.
How to prepare for the DMV
Here are some ways to streamline your DMV experience:
- Check the DMV website for your state to see if the task can be done completely online. Many processes can now be done online, like renewing a vehicle’s registration or changing an address. Otherwise, several processes can be started online and finished at an in-person location, like renewing a driver’s license.
- Schedule an appointment. While walk-ins are available at all locations, having an appointment time can help reduce frustrating wait times.
- Check the DMV’s website to ensure you have all the necessary forms for the task.
- Get there early. Since many people prefer to try and tackle simple tasks on their lunch breaks or days off, showing up early can mean you’re only one of a few.
- Eat before you go or bring a snack. Since wait times can exceed expectations, bring some form of sustenance.
- Be positive. The process is temporary.
