Iceland is making a fundamental shift in how it taxes road use. The longstanding fuel tax will be replaced with a kilometre-based road tax, ensuring that all vehicles—electric, hybrid, and fuel-powered—pay based on distance driven. The government says this change is necessary to offset revenue losses from vehicle electrification and keep road funding sustainable. While similar proposals failed before, officials insist this version addresses key concerns. With implementation set for mid-year, the focus now shifts to public understanding and adaptation.
Why does it matter in Minot? Also in your newsfeed this morning is a story on the North Dakota legislature’s approach this same issue. Here in North Dakota, but in North Dakota, we’re not yet rethinking our method so much as adjusting our rate. Is it possible that a mileage tax is a more equitable method for collecting from those who use roads the most? We’re saying that’s the case; we’re just introducing the idea.
