VMT - Maryland's Next Tax?

In a continued effort to tax anything under the sun, some Maryland lawmakers are now entertaining the thought of a "Vehicle Miles Traveled" tax. As if the gasoline taxes and rising toll fees weren't enough, Maryland drivers might soon be taxed on the actual mileage that they drive. Yeah, I know. I had the same reaction when I first heard about it...

In attempt to head off the potential VMT tax, last year, a group of Republican delegates sponsored a bill (HB277) to prohibit it. But, not surprising, that bill died in committee. You see, Republicans are the red-headed stepchildren in the blue state of Maryland.

For right now, the VMT tax is only in the discussion phase. But knowing that Maryland isn't above taxing anything, the odds of this eventually making it's way to the Governor's desk are pretty good. It seemed just like yesterday when Owe'Malley made Maryland the laughing stock of the country with the Rain Tax.....

Assuming that the VMT tax will eventually make it's way into the pockets of Maryland drivers, there is still the questions of how the actual mileage will be recorded and how the revenue will be collected. Will people be required to report their yearly mileage on their Maryland tax returns? If so, will be be on the "honor system" or will each vehicle be required to have it's odometer checked by a "revenue agent"?

There has also been some hinting about installing a GPS device in personal vehicles to record where you've driven. This, of course, opens up another can of worms regarding privacy concerns. Additionally, the GPS devices would be costly.

Oregon has already been leading the charge on the VMT tax. Next year, 5000 Oregon drivers will have mileage meters voluntarily installed in their vehicles. In lieu of paying a state gas tax, they will pay 1.5 cents for every mile they drive. So, for a person who drives 10,000 miles a year, he would owe the state $150. In Oregon, it might be a fair trade-off. But in Maryland, opponents of the VMT tax are convinced that Owe'Malley and company would implement it, not as an alternative to the gas tax, but as an additional tax.

It's almost like driving is viewed as a sin these days. To the tree-hugger, driving a Cadillac Escalade is the equivalent of clubbing a baby seal. So, I guess I shouldn't be surprised that a new "sin tax" is being proposed....

Here's a good one for you....one of the reasons given for implementing a potential VMT tax is that the revenue is declining for traditional gas taxes. And why is the revenue declining, you ask? Because of the increasing number of fuel efficient vehicles. That right, the same politicians who tried to guilt us into buying hybrids and other gas-friendly vehicles are now stabbing us in the back with a mileage tax.

Maryland drivers are currently taxed 27 cents on every gallon of gasoline. For those keeping score, the highest state gas tax is in California (46 cents/gallon) and the lowest is in Alaska (8 cents/gallon).

What makes the VMT or any tax for that matter so unpopular in Maryland, is that it never seems to end. Since Martin Owe'Malley moved to Annapolis, he has been hell-bent on taxing anything that moves.

Flash back a few years....... 

Owe'Malley gazes out of a State House window during a thunderstorm. As the lightning gives contrast to the pouring rain, Owe'Malley exclaims, "Hey, you know something? We should TAX that shit!" 

And the rest is history........

Driving in Maryland continues to get more expensive as a result of rising fuel prices, increased tolls and speed/red-light cameras. Could the "Vehicle Miles Traveled" tax be the next thing to take a bite out of Maryland commuters? If the people in Annapolis are talking about it, you can bet your ass that they'll try to make it a reality.....

kw