Texas to Test Mileage Tax

Texas authorities and University of Iowa announced the debut of a new study supposed to help determine if a mileage tax could be a replacement to the current gasoline tax. The Texas residents are currently charged with 38.4 cents per gallon in gasoline taxes, all the funds beings used for road repairs and highway construction, WOAI explained on the official website. However, the authorities will start a three-year experiment to be sure that introducing such a tax could replace the gas one.

Residents who sign up for the study will receive 895 bucks in compensation but will have to install a GPS device that will track every single move for no less than eight months.

“Participants in the study will have the on-board computer temporarily installed in their vehicles. This installation will not in any way damage the vehicle. The computer will store a record of charges due from road use. This record will be uploaded to a data processing center. If the system were to be put into practice, the center would then bill the vehicle owner. For the study, however, no money will be collected,” University of Iowa explained in a press release.

The authorities already mentioned a few advantages, pointing that rates can be set for different types of vehicles in contrast to the current gas tax, which has the same value for all drivers.

“The system can be used to help reduce problems like traffic congestion and features a low-cost and familiar approach to fee collection,” it is mentioned in the same press statement.

While three years of testing is quite a long period, if you do want to get involved check out the official website of the research.