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State officials say Minnesota is working on a pilot program to test the idea of charging drivers for each mile they drive. Other states around the country are considering a vehicle mileage tax, as revenues from the gas tax are expected to decline.

Despite opposition from the White House, a proposal to tax motorists on the number of miles they drive each year is gathering speed on Capitol Hill. Its popularity is increasing as Congress searches for alternatives to the federal gasoline tax, which isn't indexed to inflation and hasn't been raised since 1993. Supporters say that a mileage tax would be a more reliable source of funding for the upkeep of the nation's roads and bridges. However, the proposal is raising privacy concerns—particularly if GPS devices were to monitor mileage—and opponents say that the last thing people need is a new tax,...

Play Video Video:Reports of bad gasoline on the rise KING5 Seattle AP – Transportation Secretary Ray LaHood listens as President Barack Obama addresses mayors in the East Room … WASHINGTON – Raise federal gasoline taxes to help pay for road projects? Not during a recession, Transportation Secretary Ray LaHood has said. Then how about moving toward a system that finances highway construction by charging motorists by the mile? When LaHood suggested last week that be considered among other potential financing schemes, he got bushwhacked by the White House. "It is not and will not be the policy of the Obama...

The leadership of the House Transportation and Infrastructure Committee on Monday came to the defense of Transportation Secretary Ray LaHood after he was rebuked last week by White House spokesman Robert Gibbs over a comment about highway taxation. Oberstar and Rep. John Mica, R-Fla., the senior Republican on the transportation committee, said that a mileage tax would be one of the options that Congress will consider as it puts together a new five-year surface transportation spending program. Read More

Last night the Hannity Show said that the dems are discussing a new MILEAGE TAX on how many miles we drive.

President Barack Obama will not adopt a plan to tax motorists based on how many miles they drive. President Barack Obama will not adopt a plan to tax motorists based on how many miles they drive. Press Secretary Robert Gibbs commented about Transportation Secretary Ray LaHood's proposal to tax people by how many miles they drive instead of raising the federal gasoline tax. Friday, Gibbs says the tax will not be the policy of the Obama administration. LaHood said the gasoline tax that pays for the federal share of highway and bridge construction can no longer raise enough money to...

Transportation Secretary Ray LaHood says he wants to consider taxing motorists based on how many miles they drive rather than how much gasoline they burn — an idea that has angered drivers in some states where it has been proposed. Gasoline taxes that for nearly half a century have paid for the federal share of highway and bridge construction can no longer be counted on to raise enough money to keep the nation's transportation system moving, LaHood said in an interview with The Associated Press. "We should look at the vehicular miles program where people are actually clocked on the...

Washington (AP) - Transportation Secretary Ray LaHood says he wants to consider taxing motorists based on how many miles they drive rather than how much gasoline they burn -- an idea that has angered drivers in some states where it has been proposed. Gasoline taxes that for nearly half a century have paid for the federal share of highway and bridge construction can no longer be counted on to raise enough money to keep the nation's transportation system moving, LaHood said in an interview with The Associated Press.

Democrat governor proposes high tech scheme to charge drivers by the milePerhaps you've heard by now that the governor of Oregon is pitching a GPS-based mileage tax to replace the pay at the pump gas tax that all states and the federal government have used for decades.  This high tech scheme would require every car to have a GPS unit so that the state could discriminate between mileage accrued in-state vs. out of state.So just why did the State of Oregon decide to develop this hair-brained mileage tax scheme?From ODOT's own website:In 2001, the Oregon State Legislature authorized the creation of the...

In many ways, Terri Hall was on a collision course with Texas toll road policies long before she and her family loaded up their van and drove from California to the Hill Country three years ago. A lifetime of volunteering, a hunger for staying on top of politics, and strong religious and moral convictions helped hone Hall's activist instincts. Her brains, drive, superb speaking skills, engaging personality and wholesome good looks — noted by friends and enemies alike — make Hall especially effective. They help explain why this 37-year-old mother of six is a leading force in a populist assault...

AUSTIN – Four years of simmering frustration boiled over at a recent Texas Senate committee hearing with just one thing on the agenda: toll roads. An overflow crowd bashed and booed the Texas Transportation Commission in front of mostly like-minded senators. For eight hours, lawmakers and audience members alike questioned the state's increasing reliance on tolls. "We can't simply build roads at any cost," Sen. John Carona said to cheers. "We've got to build them smarter." Some argue that toll roads are the only smart play in a state where the Legislature has refused to raise the tax on gasoline,...

Gas tax on miles, not gallons, tested PORTLAND, Ore., March 25 (UPI) -- Oregon is testing the idea of collecting highway funds through a tax on miles driven, rather than gasoline consumed. Eighty percent of Oregon's highway money comes from its 24-cents-per-gallon gas tax. If the state promotes reducing gasoline consumption and consumers tend to buy the fuel-efficient vehicles, including hybrids, highway revenues would take a hit, The New York Times reported. The test program uses a global positioning system to track miles driven, using a black box to calculate how many miles are clocked in-state, out of state and...

Proposals Wanted! the University of Iowa Public Policy Center is conducting a major federally funded study to evaluate the public response to a mileage-based user charge (TAX-Ed). We are seeking to hire several marketing research firms to help recruit candidates for a two-year study. We need 240 participants per year in each of five cities. The demonstration sites for the project will bein the following locations: San Diego, CA Baltimore, MD Austin, TX Boise, ID and the Research Triangle in NC (Durham, raleigh and Chapel Hill. For complete information click on the RFP link at http://www.ulowa.edu/

OAKLAND, Calif. SOME MAY TAKE pleasure at the passage of the long-delayed $286.4 billion federal highway bill, which releases for road projects about 65 percent of the funds paid by road users into the federal Highway Trust Fund. However, for those who believe that road users are entitled to the roads they are forced to pay for, this bill raises two questions: Might there be better ways to finance and supply roads? How could the obstructive profligacy of Congress be terminated? In the past, the difficulties of paying for roads made it hard for the private sector to supply them....

Oregon tests novel mileage taxBy Eric Kelderman, Stateline.org Staff Writer In 1919, Oregon was the first state to tax gasoline. This fall, the state will launch the nation's first high-tech experiment to tax drivers for the miles they travel rather than the gas they buy. The program is the first step in a long-term plan to replace the state's gasoline tax, which pays for about 40 percent of Oregon 's road projects. As in many states, Oregon officials are worried gas tax revenues won’t be able to keep up with the rising costs of road building, especially with improved mileage...

A downside for liberals to hybrid cars? "As cars become more fuel efficient," tax revenue from the gas tax decreases, Dan Rather fretted on Tuesday night. But have no fear, CBS found a new tax to promote, "So now comes this idea: Instead of taxing drivers by the gallon, why not tax them by the mile?" Sandra Hughes reported that "as more and more hybrids hit the road, cash-strapped states are warning of rough roads ahead." She highlighted how researchers at an Oregon university have developed a GPS device to track milage and concluded with a positive plug for the...

States Mull Taxing Drivers By Mile CORVALLIS, Ore., Feb. 14, 2005 College student Jayson Just commutes an odometer-spinning 2,000 miles a month. As CBS News Correspondent Sandra Hughes reports, his monthly gas bill once topped his car payment. "I was paying about $500 a month," says Just. So Just bought a fuel efficient hybrid and said goodbye to his gas-guzzling BMW. And what kind of mileage does he get? "The EPA estimate is 60 in the city, 51 on the highway," says Just. And that saves him almost $300 a month in gas. It's great for Just but bad for...

States Mull Taxing Drivers By Mile CORVALLIS, Ore., Feb. 14, 2005 (CBS) College student Jayson Just commutes an odometer-spinning 2,000 miles a month. As CBS News Correspondent Sandra Hughes reports, his monthly gas bill once topped his car payment. "I was paying about $500 a month," says Just. So Just bought a fuel efficient hybrid and said goodbye to his gas-guzzling BMW. And what kind of mileage does he get? "The EPA estimate is 60 in the city, 51 on the highway," says Just. And that saves him almost $300 a month in gas. It's great for Just but bad...

Corvallis, Oregon-- College student Jayson Just commutes an odometer-spinning 2,000 miles a month. As CBS News Correspondent Sandra Hughes reports, his monthly gas bill once topped his car payment. "I was paying about $500 a month," says Just. So Just bought a fuel efficient hybrid and said goodbye to his gas-guzzling BMW. And what kind of mileage does he get? "The EPA estimate is 60 in the city, 51 on the highway," says Just. And that saves him almost $300 a month in gas. It's great for Just but bad for the roads he's driving on, because he also pays...

SALEM — Oregon is preparing to test a mileage-tax system that sounded like science fiction just three years ago: When cars wheel up to the gas pump, a short-range wireless signal will transmit an odometer reading to a receiver at the service station. And rather than adding taxes based on the gallons bought, taxes would be tacked onto the fuel bill based on the miles driven. The Oregon Road User Fee Task Force on Friday laid out a timetable for a 280-vehicle pilot project that will start in November 2005, most likely in Eugene. The state already collects taxes from...