President’s economic report outlines a move from fuel tax to road user fees

Tuesday, March 13, 2018

The annual Economic Report of the President in the United States has proposed replacing fuel tax with a user fee, rather than raising the fuel tax as had earlier been signalled.

Oregon is one of just four states where heavy vehicles pay taxes for road use based on distance travelled and vehicle weight, using a system similar to New Zealand’s road user charging regime.

The report outlined a number of options, and EROAD CEO Steven Newman says regardless of which regime is selected, EROAD technology offered an innovative and cost-effective way to introduce a user fee across jurisdictions.

Since the introduction of the FAST (Fixing America’s Surface Transportation) Act in December 2015, a number of pilot initiatives have been established throughout the US. Multiple states and geographic regions are testing different approaches to compare distance-based charging with the fuel tax, including the first multi-state truck pilot on the Eastern Seaboard, led by the I-95 Corridor Coalition. EROAD has been selected to take part in this pilot, which will start later this year.