What happened: In June, the Sooner State launched the “Fair Miles Oklahoma” pilot program to determine the feasibility of an approximately 1 cent per mile road usage tax. The program, which ends this December, gives drivers the opportunity to report their mileage and view a sample bill.
Why it matters: With the rise of fuel-efficient vehicles and EVs, Oklahoma’s current 19 cent per gallon gas tax is returning declining revenues while road maintenance needs remain the same. Currently, the average Oklahoma citizen drives about 12,000 miles annually while paying about $150 dollars in gas taxes. Adopting the 1 cent per mile tax would result in about $120 in revenue per person each year for those opted into the program. EV owners would also pay a $110 fee when registering their vehicle.
What’s next: After the pilot ends, the state will collect feedback from participants which will inform discussions about adopting a long-term, mileage-based system.
More reading:
- New study explores alternative to state gas tax | KTUL
- HOME | Fair Miles Oklahoma
- Oklahoma EV Tax Credits Guide | U.S. News (usnews.com)
Written by Casey Wible, Economics Intern- ARTBA