Oregon officials propose per-mile tax for gas sippers

SALEM, Ore. (AP) - Oregon state officials are proposing an alternative tax for drivers who have bought efficient or electric vehicles that seldom or never stop at the gasoline pump, where government has traditionally collected money to build and fix roads.
But the auto-making industry calls the idea of mileage taxes another roadblock for its efficient vehicles, the Salem Statesman Journal reports.
In its upcoming session, the Oregon Legislature is expected to consider a bill to require drivers with a vehicle getting at least 55 miles per gallon of gasoline or its equivalent to pay a per-mile tax after 2015.
Because it raises taxes, such legislation would need approval by three-fifths votes in both the House and Senate.
The tax would be based on mileage reports that could be made in a variety of ways, such as via smartphone app or global positioning system technology. Drivers could also just pay a flat annual fee.
Lawmakers would have to decide on the rates. The proposed bill leaves that part blank.
Oregon transportation officials have been working for more than a decade to figure out how to pay for roads as cars get extra efficient with gasoline, or use batteries. Those developments upset the usual taxation scheme of charging taxes by the gallon at the gasoline pump, an approximate way of charging more for greater use of the roads.
"Everybody uses the road, and if some pay and some don't, then that's an unfair situation that's got to be resolved," said Jim Whitty of the Department of Transportation.
Other states, including Washington, have looked at per-mile charges. A Washington law that would charge electric car owners an annual fee goes into effect in February.
Opponents of the Oregon proposal say it will hurt a new industry.
"It will be one more obstacle that the industry and auto dealers will face in convincing consumers to buy these new cars," said Paul Cosgrove, a lobbyist for the Alliance of Automobile Manufacturers.
Oregon set up a task force in 2001 and did a pilot study in 2006, which raised privacy concerns — the government could track cars as they use private roads or leave the state. Whitty said the options drivers would have in the new proposal address those concerns.
A second pilot project has involved about 50 participants, mostly state transportation officials and lawmakers. They pay 1.56 cents per mile and get a credit for any gasoline tax they paid at the pump.
Oregon Transportation Commissioner Mary Olson tracked whether she would be charged for miles on private roads by comparing results from her odometer and the GPS-based mileage reporting device.
"It was scary accurate," she said. "I was very pleased."
The per-mile charge wouldn't apply to mileage on private or out-of-state roads.
A similar bill that applied to electric vehicles and plug-in hybrids didn't make it to the House floor in 2011.
The new bill resolves uncertainties about the per-mile charge, said Rep. Vicki Berger of Salem, top Republican on the House Revenue Committee and a member of the Road User Fee Task Force,
"There's a basic unfairness around that tax, and everyone is looking for the magic way to at least get the ball rolling on a different way of doing this, one that reconnects mileage with taxes paid," Berger said.
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Information from: Statesman Journal.
Copyright 2013 The Associated Press.
I donât get the point. People obviously buy those types of cars in order to save money.
-Isaac J.
I'm on the fence on this one. If we would like to encourage an increase in mpg, shouldn't people have to pay less tax? This is not a progressive tax.
-Kim J.
Tax the bicycle riders or get them off the road!!!
The rest of us pay enough taxes...quit puting gardens and flower beds in the middle of our roads. One month after planting them they look terrible and cost too much to maintain, and they cause traffic delays when they are watering or weeding
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That's just what we need, more taxes.
My prediction: Â The state will transfer to a yearly registration, and at each inspection the mileage will be recorded. Â That number will define the amount of tax each car will be responsible for. Â
Some people will (easily) figure a way to cut the reported mileage, necessitating the creation of a new enforcement arm of the DMV Fraud types...complete with their own funding and management.
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Revamp the states PERS system and maybe there will be enough to offset fuel economy and then you can repair roads fund schools etc.
 @something fishy Large mammals will fly out of the Governer's rear end before he'll touch that golden cow called PERS.....even if it sinks the state budget.  He's beholdin' to the teachers unions, won't do a thing.  Talk is cheap, actions won't be forthcoming.....
time to tax the bicycles. they use the roads for free. time to pay up
While I live in Washington, I'd be happy to pay a $36/year licensing fee, so long as the monies are used to widen roads so we as bike riders have a place to 'safely' ride
@Mike_JÂ
Keep your bike riding in Washington...we already have way too many over here!!!
@LostSoul .......absolutely.
 @LostSoul Hear, hear.  Maybe even make limited liability insurance a requirement......
@'CouvGuy @LostSoulÂ
Dam right, they should pay for insurance and pay registration fees.
I am not going to try and hide my confusion here, seems to me the term conservative shold apply to thoses trying to limit the use of GAS derived from oil, and the term liberal to thoses driving big gas guzzlers. Haven't we all paid enough to the oil companies? I know I have. However this all helps me undestand why Phil Knight has a problem with Oregon Law makers. Go get'em Phil, an American hero.
 @czulloThe City of Beaverton's Sword of Corruption really stabbed him in the back.
I support some sort of tax because we already gave the liberals incentive to buy hybrids, so, the idea of letting commercial trucks and larger vehicles pay for their road usage while hybrids plow around on snow tires or chains if they want, doesn't seem very conservative to me.  But, the party line as a conservative is that you're supposed to oppose a tax, even if YOU are the beneficiary of a more-equitable system. So, if the conservatives keep something like this from becoming law, they've ensured that the subsidized treehugger car buyers continue to get subsidized roads paid for by red-blooded 'Merican car drivers. I fail to see the logic.
I rather buy an SUV and burn more gas then pay a seperate tax.
So.... if I have this right, the state proposes that I should report to it how many miles i drive on a monthly or yearly basis?
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Let's see...how can I put this?
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GO FORNICATE YOURSELF!
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Any Oregon state legislator who would actually propose or sponsor this fascist legislation, needs to be tarred, feathered, and run out of town on a rail by a torch-carrying mob, and you know, if the torches happen to get a little to close, and the tar ignites...well, no big loss.
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Seriously though, requiring some American citizens to report their mileage to the government, while giving others a "free pass", simply CANNOT pass constitutional muster. Not to mention the dangerous precedent it sets; how would that information be categorized, tallied, protected? Would my neighbor's yearly driving mileage be discoverable by me under the "open records" law? How about if I want to subpoena mu wife's mileage records, so I can prove she's creating on me? Can the insurance companies get the info? If so, can they use it to deny claims, based on actual mileage that exceeds what you estimated when you applied for your policy?
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Sorry, too many unanswered questions. While I'm not really serious about the tar fathering, i DO believe that ANY Oregon legislator who would actually sponsor or support this bill, needs to be recalled, as we simply cannot permit persons with that little understanding to represent us, no matter HOW good they look in their TV commercials! By her inane comments, Representative Vicki Berger has demonstrated - conclusively - that she is a complete idiot! My profound sympathies to the citizens of Salem, who have to look to this grade-school-level Nazi for representation!
@Mick Wagner So Mick, what would you propose to fairly tax electric cars so they pay a similar amount of a road maintenance tax  as a similar sized gas powered car???
And yet, the liberal governors that keep appointing these clowns keep getting elected and re-elected.  And people are shocked.....welcome to Oregon.
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Make no mistake - the goal is to get us OUT of our cars....all of them. Â We know what's best for you, comrade....just be quiet and do like we say, and no one gets hurt....
@'CouvGuy ........do as I say. Not as I do. And some animals are more equal then others.
 @Rob C 503 The solution is to keep giving the people who got subsidized hybrids subsidized roads paid for by commercial truckers and gas guzzlers.
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Doesn't seem to be a very conservative point of view.
 @Playanekes  @Rob C 503 Heavy government subsidies for the purchase of hybrid's isn't very conservative, either.  Yet that's what we have.  If it were up to me, the vehicles would live and die in the commercial marketplace like every other car out there.  But, no, the federal government provides huge tax breaks and incentives for folks to buy these cars, now we have a new a special tax, just for the car that the government paid you to buy.  I can't make stuff this good up.....
Without a doubt, whoever submitted this proposed bill should be fired on the spot. Here we are trying to be energy efficient and we're going have to pay an additional tax for it? How the *&%^ do these kind of people get elected? Good grief! The benefits clearly out way the loss of tax revenue. If you need more specifics feel free to contact me.
@snowbird  """""and we're going have to pay an additional tax for it?""""
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No additional tax, same tax only  administered in a different way.
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a gas tax is to pay for road maintenance, electric cars don't burn gas but should still have to pay the tax to support road maintenance. It just has to be collected in a different way since no gasoline is purchased.
I will NEVER support any solution that involves GPS tracking or orther privacy-crushing measures. NEVER. Any mealy-mouthed politician or bureaucrat who promotes such solutions should be tossed out on their asses.
II think we should all get giant gas guzzling monster trucks and say screw the roads. We don't need them.
 @Lips Good idea! Then we could tax the Giant Plastic Scrotum purchases!
 @negativerep No roads = No road tax. Let's get dirty! Rummmm-rummmm....
 @Lips After years of driving in the PMA and Salem area, I can say with all honesty that there's a good number of SMS (small man syndrome) truck owners who agree with you.Â
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But, alas, the Hummer is disappearing, so they've had to resort to Suburbans and Tahoes to make amends.Â
 @MarkKpic I feel taller and superior over other motorists when I drive our big truck. But shopping sucks. Guess we all have one syndrome or another.
So our state government is trying to think of yet another way to enslave the people. Keep thinking like that, state officials, and you just might find that the people you are meant to serve wake up and elect you right out of a job (I know, but one can dream).
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The people do not exist to serve the government. Government exists to serve the people.
Reading the comments below...maybe they should do away with the gas tax and replace it with a yearly fee for all registered cars, probably be more efficient and everybody pays...well auto-owners anyway.
 @deejm2112  that would be unfair to people who drive very little as they would set the tax to what they decide what the average commuter trip is. and you would still have federal gas tax to pay even if the state did not collect use tax on gas.
 @deejm2112 >'maybe they should do away with the gas tax'
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The state of OR??? Do AWAY with a tax????
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ROFLMAO!!!!Â
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No, no, no... see... The state of OR (as well as ANY government entity) doesn't 'do away' with existing taxes... EVER. They just decrease them to sell new taxes, fees, surcharges, assessments, etc... Then, once the spotlight fades and another (worthy, noble) cause comes along, they incrementally raise them back up to the level they were at before, and beyond.Â
 @MarkKpic  @deejm2112 ~  Excellent post, Mark..!  And THIS, people, is EXACTLY why we do NOT want to get hooked into a sales tax in Oregon... REGARDLESS of what other taxes they say they'll "eliminate" or "reduce"..!  Â
There used to be a saying "The sun never sets on the British Empire"... I don't know if that's true anymore, but I can GUARANTEE you that, once our gov't gets them on the books, "the sun NEVER sets on taxes"..!
@margay1 ........absolutely right Margay. Just ask any Californian over 50 years old how sales tax creep occurs. Not only at the state level but the city and county level as well. Because they ride those coat tails real quickly.
 @MarkKpic  @margay1  @deejm2112 We will never stop paying for those wars.
 @MarkKpic  @deejm2112 ~  Thanks, Mark... Â
I rest my case... :-)
 @margay1  @deejm2112 RE: Telephone tax of 1898 to fund the Spanish American War. Repealled (defunded) in early 1900's, reinstated in 1914 for long distance calls and helped finance World War I. In 1941 it was extended to local calls to help pay for World War II. It was boosted to help pay for the Korean conflict. Then raised again to help pay for the Vietnam war.
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Then, In 1990 Congress made it a permanent 3% phone tax.
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That war has been over for a few years now, yet that tax is still here.Â
 @MarkKpic lol...born and raised in MA, I know all about taxes, and even the "temporary" taxes that never go away.
The cost of administering this new tax would exceed any additional revenues.
 @oh4FS Very likely. But they'll be back to "propose" a new tax because they'll never understand why they're not making money.
Two recurring arguments in this discussion boil down to:
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"Those dadgum libruls wanna tax EVERYTHING! They don't want to tax bikes or studded tires. They don't want to tax bus riders. Why don't they tax those...?"
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"The liberals don't pay their fare share of taxes, and now they want to tax those liberal hybrid drivers. What a buncha idiots!..." So, would that mean that V8 drivers should -continue- to pay even more taxes to support the liberals? Who's calling the liberals idiots?Â
 @Playanekes the only way to tax bikes and studded tires would be a use tax. that is why i'm in favor of a bike sticker to help pay for and maintain bike lanes and road improvements for bikes. $20 for a bike sticker would go along way to pay for safety for bikes.
I personally believe that people that live in Multnomah, Clackamas, Washington, and Linn counties should be paying most of the taxes on roads. This is where 90 percent of the road work in the state happens. Maybe they should pay a 40 cent tax in those counties and a 30 cent in others. Just sayin!
I think you mean Lane County(Eugene), Linn county is Albany area.
 @MadMax64 Exactly
Time to start taxing the bicyclists too then.  They don't use gas and they use the roads.Â
And bus riders.  And Trimet riders.  And pedestrians too, I guess.Â
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Crazy. You can't win for losing nowadays. . .
 @Justanother1 i consider a person paying a fare on public transportation as paying part of the road use taxes and transit improvements.
 @32jim2  @Justanother1 The problem with that position is that most (all) transit systems within the state are already heavily subsidized by taxpayers.Â
 @Justanother1 "And bus riders. And Tri-Met riders." I suppose you know that Tri-Met is the bus company.
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Pedestrians don't put substantial wear on the roads. Tri-Met riders pay a fare, which covers part of the cost of operation, which includes gas for the bus, which--one presumes--is taxed at the pump.
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Electric vehicles use the road but don't pay for it. It's really that simple.
 @Playanekes  @Justanother1 Not disagreeing with your points, just a couple of observations...
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>'Pedestrians don't put substantial wear on the roads.'
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No, but the need to engineer and maintain infrastructure for pedestrian use does cost ODOT and municipal mantainance/repair crews money. Also, irrelevent of the cause of that wear, ALL infrastructure does wear, require maintanance and cost money to keep operational.Â
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>'Tri-Met riders pay a fare, which covers part of the cost of operation, which includes gas for the bus, which--one presumes--is taxed at the pump.'
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Partially correct. Tri-Met (as well as any other mass transit systems) do pay at the pump, but any increases in that cost are offset by an increase in fares (riders), or handed off to local taxpayers (light-rail tax increases). Tri-met itsself does not pay taxes, the communities they serve, and the passengers pay those taxes. Unfortunately, following that line of thinking, any taxes imposed on tri-met would only be passed on in the form of 'double dip' indirect increases in taxation to people who already pay them.
 @Repoman  @Playanekes  @Justanother1 >'You know the people who benefit from PERS pay into it right?'
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And you know that PERS doesn't take in anywhere near what it pays out, right?
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>'Ironically the reason why PERS is having issues...' is because it's guaranteed payout schedule is found NOWHERE in it's private industry counterparts.Â
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>'Oh and the reason why there are fewer employees is to âlower costsâ...'
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There's two problems that exist currently that you address with this part of your post. We're in agreement on one of them. The whole private/public partnership process has gone severely awry. Once upon a time, contractors worked (on their own dime) to prepare proposals, and those proposals were locked at their contracted value. Any cost overruns were absorbed by the contractor. Enter business lobby, and unions instistance on 'prevailing wage' laws, and any hope of private contracts being cheaper went out the window. Now, the government hand picks (based largely on nepotism and/or pie-in-the-sky cost estimates) a few contractors who they fund to engineer a project that may or may not fall within the proposed costs of the signed contract.Â
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BTW... your point about private retirement packages is comparing apples to bowling balls. There is not a single private retirement program out that doesn't have a 'loss of value' disclaimer in the paperwork you sign before you join. As in, (paraphrase) 'investing involves risk, there is no guarantee that your portfolio will not lose valuse... etc..'
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That is specifically why PERS is so popular among public employees. There is no risk involved. If the PERS portfolio loses value, they are contractually guaranteed that the taxpayer will make up for any losses. That is also where the system is broken. That money doesn't come from a grove of trees out behind the capitol building, it comes directly out of programs and services the state provides.
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While I agree that the 'profit at all costs' entitlement mentality is pervasive among most businesses, the other side of that same coin is that the 'I was guaranteed a 6% return' entitlement mentality is pervasive among PERS recipiants. Â
 @MarkKpic  @Playanekes  @Justanother1Â
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You know the people who benefit from PERS pay into it right?
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Ironically the reason why PERS is having issues is that the state has fewer employees as a portion of the state population. Thus effectively lowering the amount of money the current state employee population is putting in compared to the number taking out.
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Other than that point, I can agree with everything you're saying.
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Oh and the reason why there are fewer employees is to âlower costsâ by using private contractors to do the work employees used to. But like all of private industry, it must make some kind of profit to survive. Thus it actually often costs considerably more to do the same thing. ODOT and all public maintenance agencies use private companies to the tune of 8 or 9 of every 10 people on a job (and on large jobs it can be more than 19 out of 20) are private company employees who also get retirement, plus the company their work for makes a profit.
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 @Repoman  @Playanekes  @Justanother1 >'Yeah but once a sidewalk is in place...'
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The way the idea of a per-mile tax is being sold is by saying that ODOT is losing money to more fuel efficent vehicles that use roads & bridges that still require money to maintain and repair. I will conceed that it's likely that ODOT, rather than county or municipal DOT organizations, spends less on repair and maintainance of sidewalks and pedestrian rights of way than the latter, they do still spend money on it. About the best example I could come up with is the proposed CRC designs. Even the current I5 bridge has sidewalks that fall under ODOT perview. While I admit that it's extreme, there is an arguable position that if uncharged (taxed) use of ODOT maintained infrastructure is the point of any new taxation, there's a valid consideration to be make for pedestrian infrastructure.
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 >'Not only that, but transportation gets some funding from the general fund....'
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The general fund is the catch all for any part of the state operations that doesn't get funded adequately. As such, you are correct in your summation. I think part of the reaction to talk of new forms of taxation (per-mile tax), is that the state is an incredibly hungry addict. The elephant in the room is that there is too much money spent on personnel, and not nearly enough spent on services. Then, any time fiscal reality catches up with the state, another increase in existing fees/taxes/surcharges (or, in this case a new tax) is sold as being 'fair', when in fact it's not. It's just another PR blitz being presented to the public in an effort to create another source of revenue instead of tackling the real (and socally unpopular) problem of the cost of union-inspired wage and benefit packages, and the widespread abuse of state social services (which also come out of the general fund).Â
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Woe to any governor or legislator who DARES to even address the issue publicly, or try to approach any substanitive changes to it. They are demonized and run out of office by the unions PR branch. Simply put, the state does not have an income problem, they have an expense problem. The legislators and governor are therefore placed in the position of coming up with new ways by which to sell increased taxation.
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>'This discussion is really only about motor vehicles...'Â
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I agree that is what the PR branch of the state legislature WANTS it to be about. It's called 'framing the discussion'. It's how you avoid having to address real issues.  It's also how you keep people from asking tough questions.  Taxpayers are not supposed to think about the fact that Lord Kitzhaber just exponentially increased the drain on the general fund with the 'new and improved' Oregon health plan, or the state education board. Nor are we supposed to discuss the net effect of PERS on the general fund. No, we're only supposed to talk about the loss of revenue ODOT has suffered because of fuel efficent and hybrid vehicles.Â
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Not to be obstinant, but I'm not that taxpayer.
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Although, I don't drive either a 40mpg  or a hybrid vehicle, so I guess I should just hush and let them do it.Â
 @MarkKpic  @Playanekes  @Justanother1Â
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Yeah but once a sidewalk is in place, no amount of pedestrian traffic will wear it out. There are footpaths that date from Roman times that are no worse for wear than then they were installed 3000 years ago.
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Not only that, but transportation gets some funding from the general fund. That fund is also funded by income and property taxes. It is more than likely pedestrian only people (and what are there like 100 in the state?) still pay at least enough to maintain the sidewalks they use.
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This discussion is really only about motor vehicles. I think talking about pedestrians and bicycles (as much as a loathe bicycle activists) is out of place.
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 @Playanekes Yeah, I meant to say MAX riders, but my hands were moving faster than my brain - happens occasionally.Â
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As far as pedestrians are concerned - most have vehicles and pay the tax at the pump too, but probably not as much as a full-time driver. Thus, they pay less of the tax.  People who ride bikes use less gas, use the roads, and they pay less (or none) of the road maintenance taxes.Â
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