VMT for Electric Vehicles
Vehicles Miles Travelled (VMT) is a new way to fund transportation needs in the state, and it would be a fee that a car owner would pay each year based on the number of miles the car was driven during the year. This is also called Pay Per Mile. One of the big problems that the State has with the gas tax as a funding mechanism is that it is linked to gas consumption, not miles driven, so as cars get more efficient, the State gets less income even though the miles driven is going up. The State has been studying VMT as an alternative to the gas tax. It could be used as a way for both the state and local jurisdictions to collect money for funding transportation needs. The State's report on VMT suggests phasing out the gas tax and converting, over a 10-25 year period, to a VMT tax instead. They suggest starting with electric and hybrid vehicles, which are currently being charged a flat surcharge in lieu of gas taxes as part of annual vehicle registration.