NDOT looking to replace gas tax with mileage tax

People driving larger, less efficient vehicles could wind up paying more at the pump under a concept being considered by the Department of Transportation.

Director Susan Martinovich told the members of the Senate Finance and Assembly Ways and Means committees Wednesday her department will study the idea of basing gas prices on each individual vehicle's weight and use during the next two years.

"We're looking at vehicle miles traveled instead of a gas tax," she said. "How much they drive, when they drive, where they drive and what kind of car they drive."

Martinovich said Nevada's flat per-gallon gas tax doesn't provide effective funding to build and maintain roads. She said with high prices, people drove less and revenues went down. Now, during the recession, she said the same is happening even though gas prices have fallen.

"I don't think the gas tax is the answer in the long term," she said.

She said the study in conjunction with Washoe County's Regional Transportation Commission will look at the technology, legal issues and practicality of a Vehicle Weight Miles system to replace the gas tax. Results will be presented at the 2011 Legislature.

The system would put a sensor in cars to track its mileage, location and other data.

She said that means the issues of privacy must be addressed to protect vehicle owners' rights.

Oregon, she said, is considering implementing a test system based on weight and mileage driven.

Martinovich said the idea is that lighter, more efficient vehicles would get a break at the pump, as would people who drive less or drive at non-peak traffic hours.

"You get some reward for being more environmentally sensitive," she said.

She said heavier vehicles and those driven more miles cause more damage to the roadways. The idea is they should pay more toward repairs and construction of those roads.

"We want people to have a choice. If they choose to drive Highway 395 at 5 o'clock, then they're going to pay more."

She said the goal is a fairer way of taxing drivers while providing NDOT with the money needed to maintain and expand Nevada's road system.

Martinovich told lawmakers her department has revised equipment replacement schedules, keeping everything from vehicles to computers longer, and made other changes to improve efficiency. She said there is no new equipment in the proposed budget this time.

She said more than $750 million of her $1.2 billion biennial budget is dedicated to construction and right-of-way purchases. Another $174 million is bond payments on highway projects under way or already completed. The rest goes into everything from maintenance to design and planning.

Martinovich pointed out there is no General Fund money in her budget. It's all Highway Fund money generated by the state and federal gas taxes, DMV fees and service charges.

- Contact reporter Geoff Dornan at gdornan@nevadaappeal.com or 687-8750.ß