Could California Drivers Face New Mileage Tax? What We Know
Summary
California lawmakers are considering how to fund road maintenance as gas tax revenue decreases due to the rise of electric vehicles. A proposed bill, Assembly Bill 1421, would study alternatives like a mileage tax, but it does not create such a tax. Assemblymember Lori Wilson introduced the bill, which is currently under review.Key Facts
- Assembly Bill 1421 does not introduce a mileage tax but orders a study on funding options.
- The bill aims to address declining gas tax revenue as more people in California use electric vehicles.
- California currently collects about 61 cents per gallon in gas taxes to fund roads and transportation.
- Gas tax revenue generated $7.8 billion of the $14 billion in transportation funding in the 2023-24 fiscal year.
- Electric vehicle adoption could lead to a $2 to $4 billion drop in annual revenue by 2035.
- The California Transportation Commission predicts a $31.3 billion decrease in fuel excise taxes over the next decade.
- An alternative road user charge system would require a separate bill for implementation.
- The bill mentions exploring pricing programs that could offer discounts to certain drivers.
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