US legislation, tax drivers on fuel usage or miles traveled?

By Daniel Bland - November 2, 2021 (Twitter?@DanielBlandBiz)?GlobalFleet.com-FleetLatAm.com

As?the US?awaits voting on a?$1.2 trillion infrastructure bill proposed by President Joe Biden, one factor that will impact the management of corporate fleet is a possible transition from taxing drivers based on gasoline usage to taxing them based on miles traveled.

The bill, which falls under the $1.85 trillion scaled-down version of the “Build Back Better” legislation proposed by the president, includes $7.5 billion for electric vehicle (EV) charging stations,?$7.5 billion for electric school buses, and increased credits for EVs. "Under the Build Back Better plan, we aim to cut US greenhouse gas emissions by well over a gigaton by 2030," President Biden said at the?COP26 Climate Conference in Glasglow on Monday (1 Nov).

Although taxing drivers based on miles traveled could be implemented in the future, there is no new vehicle tax of such sort in the infrastructure bill, according to a report in USA today who quoted Joshua Sewell, senior policy analyst for federal budget watchdog group Taxpayers for Common Sense.

“What the legislation does include?is a voluntary pilot program to study the viability of a per-mile user fee,” said Mr Sewell, explaining that it will be used to improve and maintain roads and highways under the country’s Highway Trust Fund.

If passed, pilot participants would record miles driven and then pay fees based on those miles. Enrollment would be voluntary, and participants would be reimbursed for any charges they pay. The pilot would run from fiscal year 2022-2026.?See more here...