A few years ago Rep. Jake Fey (D- 27th District), Chair of the House Transportation Committee, tried to pass a bill that would initiate a per-mile tax based on how much people drive. It faced bi-partisan opposition; even the sponsor’s fellow Democrats had deep concerns. The bill, HB 1832, later died in his committee.
This year the effort has been renewed. Rep. Fey has released a Bill Draft Summary and is open to discussion about the idea. As envisioned by the draft proposal the mileage tax would look like this:
The initial tax rate would be 2.6 cents per mile, and would appear in tax records as a “Road Usage Charge” (RUC). Once in place, though, the legislature tends to raise tax rates over time.
July 2027 – Start of voluntary per-mile tax on electric vehicle owners.
July 2029 – Start of mandatory per-mile tax on all electric vehicle owners.
July 2029 – Start of voluntary per-mile tax on gas-vehicle owners that get more than 20 mpg.
July 2031 – Start of mandatory per-mile tax on 20+ mpg gas-vehicle owners.
Enforcement. The per-mile tax would be offset by deductions for estimated fuel taxes paid and by waiving state fees for electric vehicle and hybrid vehicle owners.
Public and tribal transit passenger vehicles would pay no tax.
The mileage tax would be calculated based on driver odometer reporting or automatic GPS tracking reported to a state database.
The first 200 miles people drive each year would be tax-free. Also, drivers could submit a claim to the Department of Licensing for miles driven on roads other than public highways in Washington.
Privacy. Under the proposal government account managers would have “an affirmative duty” to protect sensitive personal information, including location data. However, public trust in government’s ability or willingness to protect personal data is at an all-time low. As the public has learned, government information is often leaked without consequences.
Once collected, the temptation for public officials to use the data for other agendas may prove overwhelming. For example, the proposal provides that “personally identifying information reported” for mileage tax collection “may be released to law enforcement” under court order and may be disclosed “in aggregate form.”
Once the state tracks where everyone goes the data would be available to use fees or other punishments to alter people’s daily travel behavior. It’s not hard to envision a GPS-tracked mileage tax system imposing different tax rates depending on where you drive. Officials may decide to, say, discourage certain commuter patterns or induce people to take “better” routes to their destinations.
These are all open questions. The mileage tax idea, despite its unpopularity, is very much a live option in Olympia this session. Expect more details to emerge, and possible committee action, as Rep. Fey continues to take comments on the current draft proposal.
