Oregon considers a move from taxing based on gallons purchased to miles driven

The state of Oregon is looking for more ways to increase revenue for road projects. As it stands now, the state receives roughly 80% of its highway funds from the 24c per gallon gasoline tax.

The only problem is, a lot of Americans today are turning towards more fuel efficient vehicles such as hybrids. With that move comes less demand for gasoline due to lower fuel consumption meaning less income for the state.

So Oregon is now testing out a GPS-based system that would allow the state to tax drivers based on miles driven instead of gallons purchased. As one might expect, many motorists and privacy advocate groups are up in arms over this move.

"The existence of such a database, which would, for the first time in history, allow for the creation of detailed daily itineraries of every driver, raises obvious privacy concerns," said David L. Sobel, general counsel at the Electronic Privacy Information Center, a civil liberties group in Washington.

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