The tax on “out-of-state drivers” being pushed by some wanting a higher gas tax is laughable…

Yesterday, Speaker Mac McCutcheon was on my show to talk about a proposal by some county commissioners for a new gas tax.

Part of of the conversation was about floating a trial balloon about how drivers from other states will be paying this tax.

The argument goes like this: Most of interstate traffic is from Florida, Tennessee, Georgia and Missippi, those people will pay more. This ignores the obvious fact that gas stations located away from the Interstates will still have a higher tax rate and that 90% of the gas taxes paid in Alabama are paid by Alabamians.

This was a nice try by Speaker McCuthcheon.

But I would be open to this as a solution: Tax out of state credit card transactions on gasoline at a higher rate.

I have been told this in unConstitutional, a violation of the interstate commerce clause.

Is it really illegal to charge out-of-state drivers more?

Alabama does it with hunting….

RESIDENT

NON-RESIDENT

OK… How about this: A tax on miles driven?

A vehicle miles traveled tax, also frequently referred to as a VMT tax , VMT fee, mileage-based fee, or road user charge, is a policy of charging motorists based on how many miles they have traveled.

It has been proposed in various states in the United States and elsewhere as an infrastructure funding mechanism to replace, or supplement the fuel tax,[1] which has been generating billions less in revenue each year due to increasingly fuel efficient vehicles.[2]

In the United States, a VMT fee currently exists as part of a limited program for 5,000 volunteers in Oregon and for trucks in Illinois.[3][4] Internationally, Germany, Austria, Slovakia, the Czech Republic, Poland, Hungary and Switzerland have implemented various forms of VMT fees, limited to trucks. New Zealand also has such a system applying to all heavy vehicles and diesel-powered cars. France, Belgium and Russia all have truck based systems under development.

That seems worse and would tax out-of-state drivers NOTHING.

Look, if you want a higher gas tax, let’s propose one and argue about it and call it a day.

You will lose.

 

 

 

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