The California State Legislature has been exploring a mileage tax that would charge drivers for every mile they drive, potentially replacing part of the state's current gas tax of about 60 cents per gallon, according to the website they set up for drivers.
They have been studying this concept since 2014 as a way to address potential revenue shortfalls from declining gas tax collections and to make the tax more equitable for all drivers, even those who own EVs. The stagnation of revenue is attributed to the increasing number of electric vehicles and high fuel-efficiency cars on the road, according to a 2025 Policy Brief for the California Air Resources Board.
While no legislation has been drafted yet, the state has released a website modeling how the tax would work financially for users. The California Road Charge website allows residents to calculate potential costs based on their driving habits and current gas usage.
"This would be a sucker punch to all drivers, particularly working families. A lot of working families, low-income families have to drive a lot. They have to drive farther distances because housing is so expensive near the job centers," said State Rep. Carl DeMaio.
California wouldn't be the first state to implement such a system.
Hawaii already has a similar program with a $50 annual cap that drivers pay when re-registering their vehicles each year.
Despite more than a decade of consideration, the mileage tax remains in the research phase with no concrete timeline for implementation, though the California Department of Transportation says the final report for this program will be released at the end of the year.
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