California, September 20, 2025
News Summary
Amid a significant drop in gas tax revenue, California officials are exploring a per-mile road charge to fund road repairs. The proposal arises from increasing electric vehicle adoption, which reduces traditional fuel tax income. Currently holding the highest gas tax in the U.S., California seeks alternative funding mechanisms. A recent pilot program tested different fee structures and raised concerns about fairness and privacy. As state legislators prepare for discussions, community meetings are set to inform residents about this potential funding change.
California Explores Per-Mile Road Charge Proposal Amid Declining Gas Tax Revenue
California transportation officials are considering a “per-mile road charge” as a new funding method for road repairs, driven by a significant decline in revenue from the state’s gas tax. This decline is primarily attributed to the increasing adoption of electric vehicles, which are reducing the number of gas-fueled cars on the road and subsequently decreasing fuel tax revenues.
The proposed road charge would potentially replace the existing gas tax and apply to all drivers in California. Currently, California has the highest gas tax in the nation at 59 cents per gallon, which funds about 80 percent of the state’s road repairs. As more drivers switch to electric vehicles, California anticipates a further reduction in gas tax revenue, compelling state officials to explore alternative funding mechanisms for road maintenance.
Earlier this year, Caltrans, the state’s transportation department, conducted a pilot program to test a road charge system and gather data regarding its feasibility. The pilot program explored different options for the charge, including a flat fee of 2.8 cents per mile and an individualized fee based on the fuel economy of vehicles. Various methods for reporting mileage were also tested, including odometer readings and transponder devices.
Concerns and Criticism
Despite the potential benefits, local residents and officials have expressed concerns regarding the fairness of the proposed road charge. Some, including San Diegan Giselle Manansale, have criticized the plan, while El Cajon Mayor Bill Wells labeled it a “regressive tax.” Critics argue that it would disproportionately impact middle and lower-income families who may already face financial challenges. Furthermore, privacy concerns have been raised about tracking travel data using transponder devices, which could contribute to public apprehension over implementation.
Current State of Gas Tax Revenue
In the fiscal year 2023, California’s gas tax revenue totaled approximately $7.8 billion. However, with projections indicating that 15 million electric cars could be operational in California by 2035, the survival of the existing gas tax model is becoming increasingly doubtful. In light of this, transportation officials have begun exploring new funding options to ensure adequate road maintenance.
Legislative Process and Future Considerations
Should California decide to proceed with a per-mile road charge, any such implementation would require approval from the state legislature, which would also need to determine the methodology for measuring mileage. In the lead-up to any decision, the results of Caltrans’ pilot program are expected to be published later this year, serving as a critical factor in discussions surrounding the potential charge.
The Road Charge Project is set to continue its public engagement efforts, with the next community meeting scheduled for April 18 at the Fresno Government’s Transportation Office. Previous trials for mileage-based fees have been in discussion since 2016, and educational efforts are ongoing to inform the public about the implications of the proposed road charge.
Conclusion
The exploration of a per-mile road charge in California highlights the necessity for innovative funding approaches for road repairs amid shifting transportation trends, particularly the increasing prevalence of electric vehicles. The findings from the pilot program may provide essential insights as the state looks to secure a sustainable funding source for maintaining its transportation infrastructure.
FAQs
What is the proposed per-mile road charge in California?
The proposed road charge would potentially replace the current gas tax and would apply to all drivers in California.
How much is California’s gas tax?
The current gas tax in California is 59 cents per gallon, the highest in the nation, funding about 80 percent of the state’s road repairs.
What were the options tested in the Caltrans pilot program?
The pilot program included options like a flat fee of 2.8 cents per mile and an individualized fee based on a vehicle’s fuel economy.
What are the concerns regarding the per-mile road charge?
Concerns raised include its fairness as it may disproportionately affect middle and lower-income families, as well as privacy issues regarding the tracking of travel data.
When is California’s next community meeting regarding the road charge?
The next community meeting is set for April 18 at the Fresno Government’s Transportation Office.
Key Features of California’s Proposed Road Charge
| Feature | Details |
|---|---|
| Proposed Charge Type | Per-mile road charge applying to all drivers |
| Gas Tax Rate | 59 cents per gallon |
| Pilot Program Fee Structure | Flat fee: 2.8 cents per mile, Individualized fee based on fuel economy |
| Current Gas Tax Revenue (2023) | $7.8 billion |
| Projected Electric Vehicles by 2035 | 15 million |
| Next Community Meeting | April 18 at Fresno Government’s Transportation Office |
Deeper Dive: News & Info About This Topic
- CBS 8: California Considers Per-Mile Road Charge
- ABC 7: California Looks to Eliminate Gas Tax
- Kiplinger: States with the Highest Gas Taxes
- Wikipedia: Transportation in California
- Google Search: California Gas Tax Revenue
Author: STAFF HERE HOLLYWOOD
The Hollywood Staff Writer represents the experienced team at HEREHollywood.com, your go-to source for actionable local news and information in Hollywood, Los Angeles County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Hollywood Bowl summer concerts, the Hollywood Christmas Parade, film premieres at TCL Chinese Theatre, and festivals at the Magic Castle. Our coverage extends to key organizations like the Hollywood Chamber of Commerce and Visit Hollywood, plus leading businesses in entertainment, dining, and tourism that define the local economy. As part of the broader HERE network, including HERELosAngeles.com, HEREBeverlyHills.com, HEREAnaheim.com, and HEREHuntingtonBeach.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
