Gas taxes, road maintenance — debate rages on

I was reminded of Johnny Carson's quip, "I did not know that," when I read that 90 years ago, on Feb. 25, 1919, Oregon became the first state in the union to implement a tax on gasoline sold at the pump.

The tax of 1 cent per gallon was based on a simple and straightforward idea that construction and maintenance of roadways ought to be paid for by their users. Oregonians intentionally chose this, and not a general tax on the population.

What a novel idea for that time period, when automobiles were still being thought of as horseless carriages by many in this country and elsewhere! As automobile usage increased, other states and the federal government also followed up with gas taxes.

Now, when we purchase gas in Oregon, the price for every gallon at the pump includes state and federal taxes, which have gone up over the years, to keep up with inflation and the phenomenal increase in automobile and truck traffic. Local governments have the authority to charge additional taxes as well. Of course, there is a comparable tax on other types of fuel too.

That same year, in 1919, Dwight Eisenhower participated in the army's exercise to study the logistical issues in moving military vehicles and equipment from coast to coast. It was this, together with his war-time experiences in Europe, which later led Eisenhower to call for a national system of highways when he was elected to the presidency.

The two unrelated events of 1919 continue their influence on us even today, through gas taxes and a complex network of federal and state highways.

At the same time, we are also in the middle of intense public policy discussions related to gas taxes and the conditions of the roadways that seem to be rapidly deteriorating. According to the National Surface Transportation Infrastructure Financing Commission, America's transportation infrastructure is falling apart — sometimes literally.

In its report to Congress, the commission recommended implementing a mileage-based fee system by 2020, with modest increases in federal fuel taxes in the meanwhile in order to get out of "the hole we have dug for ourselves."

Well, the forward-thinking public policy pioneers that Oregonians are, we have engaged in an interesting discussion over the last couple of years on precisely this same idea of charging road users not by the gallons of gas bought but by the miles traveled in the state. However, to a large extent, such discussions are not entirely new.

Almost 15 years ago, I was a junior participant in similar policy discussions in my earlier career as a transportation planner in Southern California. Even then, there was very little disagreement on the state of roads and bridges — this was well before the catastrophic bridge collapse in Minneapolis in the summer of 2007, which served as a tragic reminder to those who were in denial about the state of the transport infrastructure.

Thus, after years of deliberations, I am ready for action, once we climb out of these depressed economic conditions. At least before the centennial of the gas tax?

published in the Statesman Journal, April 21, 2009

Gas tax, roads, and low-bids in contracts

While searching for the lowest and best price has its merits, consider this:

The dilemma of modern construction is summed up in an anecdote that Wernher von Braun, the scientist who developed the U.S. space program, used to tell about John Glenn, the first American to orbit the earth: “Seconds before ­lift­off, with Glenn strapped into that rocket we built for him and man’s best efforts all focused on that moment, you know what he said to himself? ‘My God! I’m sitting on a pile of low bids!’

I wish I had read the essay from where I have excerpted the quote, before I submitted the following op-ed to the Statesman Journal:

I was reminded of Johnny Carson’s quip, “I did not know that,” when I read that 90 years ago, on February 25, 1919, became the first state in the union to implement a tax on gasoline sold at the pump.

The tax of one cent per gallon was based on a simple and straightforward idea that construction and maintenance of roadways ought to be paid for by their users. Oregonians intentionally chose this, and not a general tax on the population. What a novel idea for that time period, when automobiles were still being thought of as horseless carriages by many in this country and elsewhere!

As automobile usage increased, other states and the federal government also followed up with gas taxes. Now, when we purchase gas in Oregon, the price for every gallon at the pump includes state and federal taxes, which have gone up over the years, to keep up with inflation and the phenomenal increase in automobile and truck traffic. Local governments have the authority to charge additional taxes as well. Of course, there is a comparable tax on other types of fuel too.

That same year, in 1919, Dwight Eisenhower participated in the army’s exercise to study the logistical issues in moving military vehicles and equipment from coast to coast. It was this, together with his war-time experiences in Europe, which later led Eisenhower to call for a national system of highways when he was elected to the presidency.

The two unrelated events of 1919 continue their influence on us even today, through gas taxes and a complex network of federal and state highways. At the same time, we are also in the middle of intense public policy discussions related to gas taxes, and the conditions of the roadways that seem to be rapidly deteriorating.

According to the National Surface Transportation Infrastructure Financing Commission, America’s transportation infrastructure is falling apart—sometimes literally. In its report to Congress, the Commission recommended implementing a mileage-based fee system by 2020, with modest increases in federal fuel taxes in the meanwhile in order to get out of “the hole we have dug for ourselves.”

Well, the forward thinking public policy pioneers that Oregonians are, we have engaged in an interesting discussion over the last couple of years on precisely this same idea of charging road users not by the gallons of gas bought but by the miles travelled in the state.

However, to a large extent, such discussions are not entirely new. Almost 15 years ago, I was a junior participant in similar policy discussions in my earlier career as a transportation planner in Southern California. Even then, there was very little disagreement on the state of roads and bridges—this was well before the catastrophic bridge collapse in Minneapolis in the summer of 2007, which served as a tragic reminder to those who were in denial about the state of the transport infrastructure.

Thus, after years of deliberations, I am ready for action, once we climb out of these depressed economic conditions. At least before the centennial of the gas tax?

Gas tax in Oregon

A few days ago, I was reminded of Johnny Carson’s quip, “I did not know that,” when I read that February 25^th was a special 90th anniversary for Oregon—in 1919, Oregon became the first state in the union to implement a tax on gasoline sold at the pump.

The tax of one cent per gallon was based on a simple and straightforward idea that those who use the roadways ought to pay for their construction and maintenance. Oregonians did not implement a general tax on the population but, instead, and correctly, directed it only at the users of the service. What a novel idea for that time period, when automobiles were still being thought of as horseless carriages by many in this country and elsewhere!

As automobile usage increased, other states and the federal government also followed up with gas taxes. And, yes, taxes have gone up, largely to keep up with inflation. Now, when we purchase gas in Oregon, the price for every gallon at the pump includes a statewide tax of 43.4 cents, and a federal tax of 18.4 cents. Local governments have the authority to charge additional taxes as well. Of course, there is a comparable tax on other types of fuel too.

It was also in 1919 that Dwight Eisenhower participated in the army’s exercise to study the logistical issues in moving military vehicles and equipment from coast to coast, along the Lincoln Highway. It was this, together with his war-time experiences in Europe, which led Eisenhower to call for a national system of highways when he was elected to the presidency.

The two unrelated events of 1919 continue their influence on us even today, through gas taxes and a complex network of federal and state highways. At the same time, we are also in the middle of intense public policy discussions related to gas taxes, and the conditions of the roadways, which seem to be regressing.

According to the National Surface Transportation Infrastructure Financing Commission, America’s transportation infrastructure is falling apart—sometimes literally. In its report to Congress on February 26^th, the Commission noted that “over half of the miles that Americans travel on the federal-aid highway system are on roads that are in less than good condition, more than one-quarter of the nation’s bridges are structurally deficient or functionally obsolete, and roughly one-quarter of the nation’s bus and rail assets are in marginal or poor condition.”

The report recommends implementing a mileage-based fee system by 2020, with modest increases in federal fuel taxes in the meanwhile in order to get out of “the hole we have dug for ourselves.”

Well, the forward thinking public policy pioneers that Oregonians are, we have engaged in an interesting discussion over the last couple of years on precisely this same idea of charging road users not by the gallons of gas bought but by the miles travelled in the state. Yet again, Oregonians are a few years ahead of the federal government. While that is being debated, our lawmakers are exploring the merits of increasing the gas tax—proposals range from an additional two cents per gallon, to as high as six cents.

However, to a large extent, such discussions are not entirely new. Almost 15 years ago, I was a junior participant in similar policy discussions in my earlier career as a transportation planner in Southern California. Even then, there was very little disagreement on the state of roads and bridges—this was years before the catastrophic bridge collapse in Minneapolis in the summer of 2007, which served as a tragic reminder to those who were in denial about the state of the transport infrastructure in the country.

The intense disagreements were related to the challenging questions of appropriate user fees, while recognizing the need for fairness and the impacts that fossil-fuel based transportation have on air quality and global warming. These are issues that have become a lot more serious over the 15 years.

Thus, after years of deliberations, I am ready for action. Perhaps there could not be a better time than the 90^th anniversaries of the first gas tax and Eisenhower’s transcontinental trip to advance this item as a part of the overall strategies related to the depressed state of the economy. We certainly do not want to wait until the 100^th anniversary of the gas tax!

Feb. 25, 1919: Oregon Taxes Gas by the Gallon

Feb. 25, 1919: Oregon Taxes Gas by the Gallon

By Randy Alfred 12 hours ago

Oregon's gasoline tax funded commercial and scenic highways, like the Columbia River Highway. This panoramic view looks east from Crown Point in the Columbia River Gorge.
Image: Oregon State Archives

1919: Oregon passes the nation's first per-gallon tax on gasoline. It's only a penny, and it's only one state, but you know where things go from here.

New York City started collecting registration fees on those new-fangled motor vehicles in 1901, and the state of Missouri took that road two years later. By 1914, every state collected registration fees (.pdf), and approximately 90 percent of the dough was going to road construction and maintenance.

Still, horseless carriages had a greater need for pavement than horses hauling carriages, and the long-distance capabilities of automobiles and trucks suggested a network of well-built intercity highways to rival the railroads. In Oregon, the state highway commission (created in 1913) started a "Get Oregon Out of the Mud" campaign for better roads in 1917.

Republican state legislator Loyal Graham (.pdf) sponsored the measure that made Oregon the first state in the nation to make road users pay at the pump to build and maintain those roads. Early projects included the Pacific Highway from the Washington state line to California and the Columbia River Highway along that mighty river.

The first gasoline tax was one cent a gallon (12 cents in today's money). Gasoline in those days sold for about 25 cents a gallon, which would be a bit more than $3 these days.

Colorado and New Mexico followed Oregon within six weeks to initiate per-gallon taxes. North Dakota followed later in the year. When New York finally joined the procession 10 years later, all 48 states had imposed taxes of 1, 2 or 3 cents per gallon. The federal government levied its first gasoline tax in 1932: a penny a gallon (15 cents today).

Ninety years after its inception, the Oregon gasoline tax is 25 cents imposed by the state, with up to 8 cents more in city and county taxes, and 18.4 cents for the feds. That could add up to 51.4 cents, depending on where you buy. The U.S. average is 45 cents a gallon, including the federal levy.

Oregon is still a leader in new ways to tax vehicle use. It ran a 300-car pilot program from 2006 to 2007 to test the idea of equipping all new vehicles with GPS and then taxing them by miles driven. The idea also been bandied about in Washington state, Idaho, Colorado, Texas, Minnesota, Florida, North Carolina, Ohio, Pennsylvania, Rhode Island, Massachusetts and — until President Obama nixed it last Friday — the federal government.

The future will undoubtedly be interesting.

Source: Wired.com
Thanks to Greg Mankiw

Greenhouse Gasbags

The title and the content outsourced to Heather Mac Donald:

More proof that greenhouse-gas environmentalism—for liberals, one of the main reasons for getting rid of the allegedly anti-science, religiously-driven Bush Administration–is just posturing.

The California legislature has been struggling to close a $41 billion budget deficit. This is the same legislature that insists on imposing its own emissions standards on Detroit auto-makers—safely out of sight and out of the voting booth–because it cares so much about global warming. Now, if ever, one would think, would be the time to increase gasoline taxes, a two-fer that would raise revenue and discourage greenhouse gas emissions.

So did a proposed 12-cents-a-gallon surcharge on gas make it into the crippling $12.8 billion in tax hikes which the California legislature finally passed yesterday? Of course not. Voters would raise bloody hell. Better, apparently, to kill all businesses slowly with a sales tax hike than to interfere with Californians’ right to cheap gasoline. Liberal politicians’ pious devotion to the science of global warming never translates into action, unless the costs of action can be safely transferred onto non-voters. And environmental groups are just as cowardly. I sure didn’t notice the Sierra Club or the NRDC protesting when presidential candidate Hillary Clinton called for a suspension of the federal gas tax last year.