California is trying out a new tax based on mileage to make up for lost revenue from electric cars letting drivers choose how they track their miles and providing incentives for participation.
California Road Charge: Solving Budget Issues Caused by Electric Cars
California lawmakers are launching a test program in August 2024 to solve a budget problem caused by the popularity of electric cars. They want to replace the gasoline tax, which funds road maintenance with a new tax based on how many miles people drive.
Maintaining California’s roads costs $8.5 billion yearly, mostly paid for by taxes on gasoline. But as more people switch to electric or hybrid cars the state loses money because these cars don’t pay as much in taxes. With over a million electric cars and hybrids on the roads and the loss adds up to $200 million each year.
To fix this, Caltrans, the state transportation agency, suggests a new tax called the California Road Charge. This tax would depend on how many miles a person drives each year. They’re still figuring out the exact rate but it could range from $.02 to $.04 per mile, according to the report of Auto Blog.
Under this plan, drivers can choose how their mileage gets tracked. They can use electronic devices in their cars, built-in tracking systems, or simply send in a picture of their odometer reading. This gives people options based on their preferences for privacy and convenience.
(photo: Los Angeles Times)
Join the California Road Charge Test Program: Help Shape the Future of Road Funding
Interested drivers can sign up for the test program on the California Road Charge website. Participants will be selected in July 2024 and asked to pay the new tax from August 2024 to January 2025. They’ll also give feedback through surveys and receive up to $400 in gift cards as an incentive.
The results of this test program will help lawmakers decide whether to replace the gasoline tax with the Road Charge. With California planning to ban gasoline-powered cars by 2035, finding a sustainable way to fund road maintenance is essential for the state’s future
