Oklahoma pay-per-mile proposal gets no traction


Oklahoma pay-per-mile proposal gets no traction

A proposal for a pay-per-mile voluntary program has been shelved. (Photo by Spencer Platt/Getty Images) (This image cannot be republished unless you have a subscription to Getty.)

Editor's note: This story is part of Oklahoma Voice's "Whatever Happened To ..." end-of-year series that provides updates to some stories that captured the interest of Oklahomans in 2023 and 2024.

OKLAHOMA CITY - A recommendation to implement a voluntary pay-per-mile program to offset projected declining motor fuel tax revenue appears to be shelved.

"I don't foresee Oklahoma implementing a pay-per-mile program in the near future," said Rep. Brian Hill, R-Mustang.

Another piece of legislation has eliminated the need for the program, he said.

In 2021, lawmakers passed and Gov. Kevin Stitt signed House Bill 1712. Hill was an author.

The measure created the Oklahoma Road User Charge Program and a task force to study and report on transportation funding alternatives to address declining fuel tax revenues. It required a report to be submitted by Dec. 31, 2023, to the Legislature.

The task force met 10 times.

The report indicated that Oklahoma was beginning to see a drop in revenue from motor fuel taxes because vehicles were becoming more fuel efficient.

In addition, the state was seeing an increase in use of hybrid and electric vehicles, the report said.

The report said that by 2050, the state would have a $7.86 billion shortall in motor fuel tax revenue.

Electric vehicles were about 1% of the fleet in 2023 and were predicted to grow to 50% by 2050, according to the report.

Oklahoma imposes a 19 cent tax on gasoline and diesel.

In 2021, lawmakers passed legislation, dubbed the DRIVE Act, that imposed a 3 cent kilowatt-hour fee at public electric vehicle charging stations.

Oklahoma imposed a registration fee on electric vehicles and plug-in hybrids which generated $1.3 million in 2023.

"The DRIVE Act addressed this concern," Hill said. "While there's always room for improvement, I don't believe it's an urgent issue that requires immediate attention."

Sen. John Haste, R-Broken Arrow, and Hill both served on the task force.

Haste said he did not support any type of mandatory pay-per-mile program.

Oklahoma has one of the lowest gas taxes in the nation, he said.

At some point he would expect the state to do away with the gas tax and replace it with something else, Haste said.

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