Development and Performance Evaluation of a Revenue Collection System Based on Vehicle Miles Traveled

Abstract

The State of Oregon is heavily dependent on fuel tax revenues to maintain roads. Several technological developments, including the introduction and use of more fuel-efficient vehicles, will have a dramatic effect on fuel tax revenues in the near future. In response to these trends, Oregon House Bill 3946 mandates that the Oregon Department of Transportation (ODOT) begin implementing pilot systems to test alternatives to the current system of taxing highway use through fuel taxes. The Road User Fee Task Force (RUFTF) was created as part of the bill with the mission of “developing a revenue collection design funded through user pay methods, acceptable and visible to the public, that ensures a flow of revenue sufficient to annually maintain, preserve and improve Oregon's state, county and city highway and road system.” One alternative being considered by the RUFTF employs a fee based on vehicle miles traveled (VMT). This paper describes the development of two working VMT-based prototype technology configurations. This development effort was necessary because commercial-off-the-shelf technology with the functionality required by RUFTF was not available. Multiple concepts for on-vehicle mileage collection devices (using both odometer and Global Positioning System technology) and systems for fee calculation and collection were developed, integrated, and tested as part of the two prototype technology configurations. Results indicate that a VMT-based fee collected via radio frequency communications at service stations is technologically feasible.