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California Proposes 3-Cent Per Mile Tax in $8 Billion Road Maintenance Pilot Program

May 24, 2024, 02:45 PM

California is considering introducing a new tax that will charge car drivers 3 cents for every mile driven. This move comes as the state faces declining revenues from its gas tax due to the increasing adoption of electric vehicles (EVs). The state currently spends $8 billion annually on road maintenance, and the new tax is intended to help cover these costs. A pilot program by Caltrans is being tested to evaluate the feasibility of this tax. The proposed tax could significantly impact drivers, with a trip from San Francisco to Los Angeles potentially costing $114 in mileage fees alone, plus fuel costs. This initiative reflects broader efforts by states to find alternative revenue sources for road maintenance as traditional gas tax revenues decline. Critics argue that the tax could increase to $0.05 or even $0.10 per mile. Governor Gavin Newsom is also involved in the discussions.