Funding and Finance Strategies
Would a national vehicle miles travelled (VMT) fee help or harm low income households and/or rural places?
Some resources to consider:
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Simon Tan says:
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Bruce Abanathie says:
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Karalyn Clouser says:
There are some challenges, depending upon how it is set up. Due to greater distances to reach destinations and older, less fuel efficient vehicles, and fewer transportation optinos, rural areas could bare a larger cost burden. Also, with some highway funding going to transit, you could be in a situration where rural communitites are paying (in many respects) for urban transportation.
One option to make mileage fees more equitable is to consider a “lifeline” rate for low-income drivers, similar to the reduced rates that low-income families pay for electricity in California under the CARE/FERA program (https://www.cpuc.ca.gov/lowincomerates/).
An MTI survey released in March found that 62% of Americans support lower mileage fee rates for low-income drivers. (See Q15 in this report: https://transweb.sjsu.edu/research/2101A)
A VMT fee would be regressive fee, as are most other transportation charges, including gas taxes, sales taxes, and parking fees. Revenues can be used to improve transit services, which are disproportionately used
by lower-income populations.
There’s a great calculator in a recent WashingtonPost article –> https://www.washingtonpost.com/transportation/interactive/2021/electric-mileage-tax/