Texas House advances vehicle mileage tax pilot program including trucks

A bill halfway through the Texas statehouse would launch a vehicle mileage tax for cars and trucks.

The House voted 96-46 to advance an amended bill that would authorize a vehicle mileage user fee pilot program and a task force to assist in developing and evaluating the program. Passage clears the way for the bill to head to the Senate.

Sponsored by House Transportation Committee Chairman Terry Canales, D-Edinburg, HB3418 states that the pilot program would “assess the feasibility of eliminating state motor fuels taxes and other transportation user fees.”

Texas now collects a 20-cent-per-gallon tax rate on gas or diesel purchases.

Canales says he believes a vehicle mileage tax is the best option for long-term transportation funding.

“If we must replace the motor fuels tax, which is rapidly coming, we are already seeing that electric vehicles and other people are not paying their fair share,” Canales recently told the committee he chairs. “(Vehicle mileage tax) offers the best promise for a fair and equitable funding source in the maintenance of Texas roads.”

Taskforce

The appointed panel would consist of seven members appointed by the governor, lieutenant governor, House speaker, and both chambers house committees.

The governor would appoint three members that represent the trucking industry.

Panelists would be charged with conducting at least three public hearings on the pilot program. The group also would be responsible for making recommendations on the design and on the criteria used to evaluate the pilot program and “other alternative approaches to motor fuel taxes.”

Vehicle mileage tax pilot program

The program would assess a user fee on Texas vehicle owners that is based on the number of miles traveled in the state.

House lawmakers approved HB3418 after removing a specification that the program apply to commercial vehicles. The change opens the door to the inclusion of personal vehicles.

Additionally, the program would be limited to 800 participants. The number of participants is up from 300 in the introduced version.

Another revision removed the requirement for on-board vehicle-mileage-counting equipment be added to affected vehicles. Instead, the current version would require mileage to be measured by “a variety of vehicle-mileage-counting strategies” that could include odometer readings.

Opponents at the statehouse have raised concerns that passage of the concept would put Texas on a path to greater intrusion. Rep. Steve Toth, R-The Woodlands, questioned whether vehicles would be tracked.

Canales said the pilot program would determine the best way to keep track of vehicle miles traveled.

Neither Texas, nor any government entity should be able to track our vehicles.
That which begins as a study today becomes tyranny tomorrow. pic.twitter.com/yR7yy0CqT2

— Steve Toth (@Toth_4_Texas) May 5, 2023

The vehicle mileage tax pilot program would be in place for one year.

After the program, the Texas Department of Transportation would be responsible for providing a report to the legislature summarizing the results. Included in the report must be the feasibility of permanently assessing a vehicle mileage user fee and a comparison of other alternative approaches or supplements to fuel taxes.

Truckers voice concern

Professional drivers and others recently submitted comments on the bill.

Owner-operator and OOIDA life member James Rowland of Midland, Texas, submitted opposition testimony to the House Transportation Committee.

“No more taxes. Please. Truck drivers pay enough taxes. We are already struggling. And this would not be fair.”

The Texas Trucking Association has added that a VMT would be an invasion of privacy.

“I know this is just a study, but it’s a slippery slope,” TTA Chairman John Prewitt testified.

Discussion begins in Senate

On Wednesday, the Senate Transportation Committee held an initial hearing on HB3418.

Opponents stated concern about where the pilot program would eventually lead.

“This is about tracking every single one of us,” Rachel Hale of Texans for Toll-Free Highways told committee members.

Senate Transportation Committee Chair Robert Nichols, R-Jacksonville, proposed an amendment to the bill that would limit application to state-owned or -leased vehicles.

The committee did not take immediate action on the bill. LL

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