The California Road Charge Pilot Program, testing a mileage-based tax for fair road funding amid declining gas tax revenue due to EV adoption.
California Road Charge Pilot Program: Testing Mileage-Based Tax for Fair Road Funding
California faces a financial challenge as the switch to electric vehicles (EVs) reduces revenue from gas taxes needed for road maintenance. To adapt, lawmakers are considering a mileage-based tax called the California Road Charge which would tax drivers based on miles driven instead of gas used. The system aims to offset revenue losses and ensure fair funding for road upkeep, according to the report of The Premier Daily.
To test the Road Charge system, a pilot program will start in August 2024. Selected drivers will pay Road Charge fees monthly for six months, using various methods to track their mileage. The program offers flexibility and privacy options to encourage participation. Participants can sign up on the California Road Charge website and receive up to $400 in gift cards.
(photo: Driving.ca)
California Road Charge Pilot Program: Evaluating Alternatives to Gas Taxes for Sustainable Road Funding Amid EV Rise
The pilot program will help officials decide if the Road Charge should replace gas taxes. By collecting data and feedback from participants, the state aims to determine the system’s effectiveness and feasibility. If successful, the Road Charge could mark a significant shift in California’s transportation funding approach.
Furthermore, the rise of electric vehicles (EVs) in California has led to an annual loss of $200 million in revenue from gas taxes. Lawmakers are considering the California Road Charge, a mileage-based tax system, to address this issue. This innovative approach would tax drivers based on miles driven rather than gas usage aiming to ensure fair funding for road maintenance despite the increasing popularity of EVs.
