On May 17, it was announced that a new driving tax might be implemented in California sometime in the near future.
No information has been provided as to whether drivers would be paying monthly or annually, but the new tax would charge drivers for every mile they drive.
While the actual price per mile hasn’t been set yet, it is believed to be around 2-4 cents according to the California Department of Transportation. Whether it’s an electric, hybrid or gas powered car, everyone would need to pay.
The purpose of this tax is to make up for the decrease of drivers paying the state’s current gas tax due to the increase of electric vehicles. Since California is pushing to ban the sale of new gas vehicles by the year 2035, fewer people would be utilizing gas and paying the gas tax.
Currently, the money the state gets from the gas tax goes toward about 80% of the road improvements, but with that money disappearing the new driving tax will make up for that loss. Ultimately, the goal of this new tax is to replace the existing gas tax.
Currently, there is a six month pilot program Caltrans is putting together. They are asking residents to sign up for it and they would be testing out a 3 cent charge per mile. This program would start in August 2024 and require drivers to complete two surveys and pay the Road Charge payments online. Participants in this program will earn up to $400.
This new driving tax brings up concerns in California residents, as it might be required for drivers to have tracking devices installed in their vehicles that would keep track of their mileage.
Mt. SAC student, Megan Lohans says with juggling school, work and being a mom she spends over an hour driving everyday and this new tax would not be a good thing.
“It would be super expensive, and I already spend about $70 on my tank that I fill up at least once a week,” Lohans said.
More information on this new tax might get released after the pilot program ends in Jan 2025 and slight changes may be made.