Lawmakers propose road usage fee on fuel-efficient vehicles/WMUR

This is one more sign of governments desperate to tax on any source of revenue.  Instead of recognizing that cars with lower emissions deliver real benefits to a state, including cleaner air--less money to clean it--they impose what is, in essence, a penalty on efficiency?  Really?

Governments, in fact, should look to cut spending versus desperately clinging to old sources of revenue.  Moreover, they need to adjust their expectations, use some creativity, in managing budgets as the world changes around them.

Some say fee needed to replace declining tax revenues

CONCORD, N.H. —
Fuel-efficient vehicles have put such a big dent in gas tax revenues over the past few years that some state lawmakers say it's time for what they call a road usage fee.

The fee, which would essentially be a vehicle registration surcharge, would be aimed at vehicles with gas mileage over 20 mpg.

"If I have a pickup truck that gets 15 mpg, I'm paying a lot more for use on the highways than if I own a hybrid, which is getting 40-50 miles to the gallon," said Rep. John Graham, R-Bedford.

The tax would top out at just over $100 annually for vehicles that get more than 50 mpg.

"It saves us from, if tomorrow, everybody purchased an electric vehicle,” said Gary Abbott, executive vice president of Associated General Contractors. “The highway fund would be done, outside of registration fees."

Some said the road usage fee would be a backward policy.

"We need to get away from miles per gallon and the internal combustion engine, which is on its way out," said Rep. Lee Oxenham, D-Plainfield.

"Whether I have a vehicle with a rating of 25 mpg or one with 40 mpg, that does not tell anyone whether that vehicle traveled 5,000 miles or 25,000 miles," said Rep. Peter Somssich, D-Portsmouth.

Lawmakers agree that the state's crumbling infrastructure is in need of repair, but there has been gridlock in Concord over how to pay for it.

"We do still have 252 municipal bridges that are on the red-list bridge list, and I believe there is a significant waiting list for bridge aid," said Barbara Reid of the New Hampshire Municipal Association.

While the new Democratic majorities are likely to be more open to tax or fee increases to fund infrastructure improvements, they may be more likely to heed the warnings of environmental groups such as the Sierra Club, which believes a road usage fee is too burdensome on people who are already doing their part to consume less.

"And this is on top of their registration fee forever," said Catherine Corkery of the New Hampshire Sierra Club.

Hybrid and electric car owners in Hooksett were unenthusiastic about the proposed fee.

"It would make more sense to first increase the gas tax to get more people driving hybrid cars, and once that becomes a problem and we have so many people driving hybrid cars, then sure, then we can talk,” said Scott May, of Lyme.

"I bought this car, for one, to save money on gas and also to be better for the environment,” said Kristen Hill, of Manchester. “(It feels like) a punishment on trying to do something right."

Follow this story to get instant e-mail alerts from WMUR on the latest developments and related topics.