Road Tax Revolution: California To Replace Gas Tax With Mileage Tax!

Los Angeles, California – As the number of electric vehicles on California roads continues to rise, the state is facing a decrease in gas tax revenue, which is traditionally used to maintain its roadways. With over 1.2 million hybrid or electric vehicles now registered in the state, the current system is no longer sustainable.

In an effort to address this financial challenge, Caltrans, the state transportation agency, is launching a pilot program to explore an alternative to the gas tax. This new program, known as the California Road Charge, proposes to tax drivers based on the number of miles they drive, rather than the amount of fuel they consume.

According to Caltrans spokesperson Lauren Prehoda, California currently relies heavily on gas tax revenues, which amount to around $8 to $9 billion annually. However, with the increasing popularity of electric vehicles, there is a significant loss in revenue that needs to be mitigated.

To implement the California Road Charge, drivers would have various options for tracking their mileage, including using electronic devices, built-in tracking systems in their vehicles, or submitting photos of their odometers. This flexibility aims to accommodate different preferences for managing data privacy.

The six-month pilot program, set to begin in June, will allow volunteers to participate in testing the Road Charge program. Participants will have their miles tracked, complete surveys, and have the opportunity to earn up to $400 for their involvement. Ultimately, the decision to replace the gas tax with the Road Charge will be up to the state Legislature.

As California looks to adapt to the growing number of electric vehicles on its roads, the implementation of the California Road Charge could provide a more equitable way to fund road maintenance and infrastructure projects in the future. This innovative approach aims to address the financial challenges posed by the shift towards electric vehicles while ensuring the continued upkeep of the state’s transportation network.