The State of Louisiana is planning a pilot program to mandatory subject drivers to a mileage-based user fee. It aims to recoup the lost revenue from the gas tax since new energy vehicles emerged. The expected revenue from the proposed program will be used to prepare the state for the rapidly growing adoption of EVs.
“It is going to grow and it is going to grow a lot faster than we think. If we are not prepared we are going to be on the back end of that and that is not where we want to be.”
DOTD Secretary Shawn Wilson
America’s top local television and media firm Nexstar Media Inc. reported through its station in Baton Rouge that the Department of Transportation and Development (DOTD) proposed the plan during the Louisiana Legislature’s Electric Vehicle Task Force meeting on February 25.
Mileage-based user fee
As mentioned, DOTD Secretary Shawn Wilson proposed taxing motorists based on mileage. To do so, he intends to conduct a pilot survey on 4,000 department vehicles to gather information on the kilometers they travel and the roads they use to estimate the possible tax revenue.
“I don’t see that there’s anything else out there that is universally accepted to accommodate the types of changes or disruptions that we’re going to see in this market because all of them are going to go from point A to point B regardless of their energy source.”
DOTD Secretary Shawn Wilson
However, privacy issues arise when tracking where cars go in order to administer that kind of tax regulation. In response, DOTD Secretary Wilson clarified that the contribution would be compensation for the portion of the gas tax that is not currently being paid, not just for EVs.
How would it happen?
DOTD Secretary Shawn Wilson announced his team’s effort in exploring technologies that track mileage consumptions and road identifications to accurately calculate the amount drivers must pay in taxes.
He further explained that the technology might be in the form of a mobile phone app, built-in car data, or even other devices. As stated, the pilot program is planned to initially launch on DOTD vehicles and other state-owned cars.
Why is this necessary?
The office of the Legislative Auditor published a report on February 15, stating that Louisiana would have to require an annual fee of $116 for every gasoline vehicle and $271 for every EV to recoup the existing $18.8 billion backlog for transportation infrastructures.
“It’s not necessarily a fiscal cliff, but we’re walking slowly towards the sea and we can’t swim. We’ve got to address this in some shape, form or fashion.”
Sen. Patrick McMath, R-Covington
