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Why Mileage Fees Make More Sense than Higher Gas Taxes

May 17, 2017

Nate Bryer, VP of Innovation, Azuga

Recent news highlights the deteriorating state of our nation’s infrastructure and the need for an increase in transportation revenue. Many are calling for higher gas taxes; however, politicians have become wary of such taxes—and for good reason. Today, Americans increasingly view gas tax as a regressive fee (i.e. taking a proportionally greater amount from people with lower incomes due to older vehicles with lower mileage) and federal gas tax raises have been on a halt since 1993.

Many states are proactively seeking funding alternatives, and many are finding that a pay-per-mile fee or road usage charge (RUC) model has much promise. This model applies a philosophy more in line with current society’s needs, demands, and ever-changing technology.

The following are some of the ways RUC is a better fit for national infrastructure:

Azuga has been instrumental in the testing and development of the road usage charging concept, having completed RUC pilots in California and Colorado and currently operating the RUC pilot in Oregon. Azuga is on the frontlines, innovatively advocating our on-the-road customers. Today, we show our support for Infrastructure Week (May 15–19). Please follow us at @Azuga_GPS as well as the #TimeToBuild movement.

Oregon’s OReGO pilot program is currently underway and accepting applicants, though some spaces are limited in some mileage categories. Click here for more information on the free connected car services Azuga offers to pilot volunteers.