House rejects road usage fees

This year the New Hampshire House rejected two bills that aimed to update the gas tax to address alternative fuel and fuel efficient vehicles.

The first bill, HB 1568, would have required electric car owners to pay an extra fee upon registration.

The second bill, HB 1602, would have established a fee structure for all cars based on miles per gallon.

Right now the gas tax is a fundamental source of revenue for transportation infrastructure.  However, cars are generally becoming more fuel efficient, and alternative fuel vehicles are becoming more popular.  These fuel efficient vehicles use the roads as much as any other cars, but they contribute less in gas tax revenue.

Some policymakers believe it is unsustainable for fuel efficient cars contribute less towards road maintenance.  The federal government has even established a grant program for states to explore alternatives to the gas tax for road maintenance. 

However, the New Hampshire House rejected HB 1568 and HB 1602 because of revenue concerns.

The Ways and Means Committee reported that HB 1568 would cost more to implement than it would generate in revenue.

Opponents of HB 1602 were concerned that the proposed fees for cars with high miles-per-gallon went too far, becoming an unfair tax on residents.

Do you support an alternative to the gas tax?  Share your ideas in the comments.