Oregon First In Nation To Implement Per-Mile Road Tax Program

Cameron Aubernon
by Cameron Aubernon

This July, Oregon will be the first to implement a program taxing motorists by miles driven instead of collecting at the pump.

Up to 5,000 cars and light-duty commercial vehicles can volunteer for the program — dubbed OReGO — each of whom will then be charged 1.5 cents per mile, USA Today reports. The information will be tracked via a device provided by the Oregon Department of Transportation/Sanef, Verizon Telematics, or Azuga, depending on the circumstances and needs of each volunteer.

Those whose vehicles fuel up at the pump will receive a tax credit if fuel use exceeds miles driven, while EV owners will pay the road-use tax without receiving the fuel tax credit. OReGO has a quota in place for less-efficient vehicles, limiting acceptance to 1,500 volunteers whose vehicles get less than 17 mpg, and 1,500 for those with vehicles between 17 mpg and 22 mpg.

The ultimate goal of programs like ODOT’s OReGO is to make up in infrastructure maintenance and repair funding what is being lost by continuously low fuel taxes and improving fleet fuel economy. Gas taxes provide Oregon with under half of the state’s highway fund, the rest coming from the Highway Trust Fund.

The $8.4-million program has no expiration date at this time, with permanence left in the hands of the Oregon legislature. Concerns over privacy and an alleged favoring of conventional vehicles over EVs and hybrids regarding tax credits have come up, the former remedied through data protections such as offering devices without GPS, and record destruction after 30 days with limits on the data’s use for devices with GPS. Volunteers can also opt-out of the program at any time, and can receive refunds for miles driven on private property and outside Oregon.

OReGO’s first day of implementation is July 1.

[Photo credit: Oregon Department of Transportation/ Flickr/ CC BY 2.0]

Cameron Aubernon
Cameron Aubernon

Seattle-based writer, blogger, and photographer for many a publication. Born in Louisville. Raised in Kansas. Where I lay my head is home.

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  • Cartunez Cartunez on May 22, 2015

    If they would stop raiding the road funds and cut the waste and out right fraud they would have plenty of money to keep the roads up. America has turned into the worst kind of junkie. So focused on who is having sex with who and things that really matter get no attention at all.

  • Bud777 Bud777 on May 24, 2015

    You have to understand what is happening in Oregon. An out of control Public Employee retirement System (PERS)has gutted most programs. We are 49th in education, our roads are worse than Detroit and there is a constant struggle to cut more to guarantee that public employees retire at more than 100% of their salary plus free health care. This tax will not replace fuel taxes, it will add to them. The are willing to penalize efficient autos to pad their coffers. In Oregon green means money for the state, not eco-responsibility. Good thing that all my cars are pre 1996

    • RideHeight RideHeight on May 24, 2015

      "public employees retire at more than 100% of their salary plus free health care." Sounds sweet.

  • 3-On-The-Tree Lou_BCsame here I grew up on 2-stroke dirt bikes had a 1985 Yamaha IT200 2-strokes then a 1977 Suzuki GT750 2-stroke 750 streetike fast forward to 2002 as a young flight school Lieutenant I bought a 2002 suzuki Hayabusa 1300 up in Huntsville Alabama. Still have that bike.
  • Milton Rented one for about a month. Very solid EV. Not as fun as my Polestar, but for a go to family car, solid. Practical EV ownership is only made possible with a home charger.
  • J Love mine, but the steering wheel blocks dashboard a bit, can't see turn signals nor headlights icons. They could use the upper corners of the screen for the turn signals. Mileage is much lower than shown too, disappointing
  • Aja8888 NO!
  • OrpheusSail I once did. My first four cars were American made, and through an odd set of circumstances surrounding a divorce, I wound up with a '95 Nissan Maxima which was fourteen years old and had about 150,000 miles on it.It was drove better, had an amazing engine, and was more reliable than any of my American cars. This included a new '95 GMC pickup that went through five alternators in under two years while the dealership insisted that there was no underlying electrical problem while they tried to run the clock on the warranty.That was the end of 'buy American'. I've bought from Honda and VW since, and I'll consider just about anything except American now.