California Considers Mileage-Based Road Charge to Replace Gas Tax for Fairer Funding

SHARE NOW

California is considering a new way to fund road repairs by replacing the gas tax with a road charge program. This program would base fees on the number of miles driven rather than gallons of gas used.

The concept is similar to how electric bills are calculated, with drivers paying more the farther they travel. This proposed change aims to include those with electric vehicles more fairly.

It breaks down to this: the more you drive, the more you pay for highway and roadway repairs. If you drive less, then you also will pay less.

Ralph Andersen, a Chico resident, shared his thoughts on the proposal.

“That’s probably more fair,” Andersen said. “Vehicles get different mileage based on what they do so a pay by mile flattens the curb for people that use a lot more fuel because they’re traveling with bigger vehicles but they’re still traveling the same amount of vehicles that drive less.”

However, Andersen also expressed concerns about the current use of funds.

“The money that goes into the fund in general isn’t very well used, because our roads are in the poorest shape ever and the gas tax keeps getting increased,” said Andersen.

The state anticipates a significant funding drop for road repairs due to the rise in electric car usage and more people opting for ride-share services like Uber and Lyft. Currently, 80 percent of road repairs are funded by the gas tax, with Californians paying an average of $300 annually in state gas taxes.

Caltrans tested the per-mile fee from last year to January of this year, but the results have not been made public yet. The final report on the road charge program is due to the state by the end of 2026.