California lawmakers are advancing a controversial proposal to study replacing the state’s gas tax with a per-mile fee system, sparking fierce opposition from Republican legislators and motorists concerned about additional financial burdens.
The Democrat-led Assembly Bill 1421, which passed 43-18 on Thursday, extends the “Road Usage Charge Technical Advisory Committee” until January 2035. The committee will study implementing a mileage-based fee system to fund transportation infrastructure as gas tax revenues decline due to increasing fuel efficiency and electric vehicle adoption.
“As California transitions to a carbon-emissions-free future, a road charge system is being considered as an alternative to the current gas tax, which is expected to see revenue decline,” according to an analysis by the California Transportation Committee. The committee projects transportation funding could drop by $31 billion as residents shift away from gasoline-powered vehicles.
A previous pilot program set rates at 2.5 cents per mile for light-duty vehicles weighing less than 10,000 pounds, with rates for heavier vehicles based on weight. Under such a system, California drivers, who average about 11,400 miles annually, could pay between $228 and $1,026 more per year depending on the final rate.
Republican lawmakers have strongly criticized the proposal, arguing it would disproportionately impact rural residents and commuters who drive longer distances.
“Californians are already getting crushed by the cost of food, housing, power, and gas,” said Assembly Republican Leader Heath Flora in a statement. “We already pay the highest gas taxes in the nation. Now Sacramento is talking about adding a new tax for every mile people drive. Piling on another tax right now shows just how out of touch politicians in Sacramento are with the reality working families face.”
California gubernatorial candidate Steve Hilton called the proposal “absolutely outrageous” and promised to veto any such legislation if elected. “If the Democrats get their way, this journey — and every single journey made by anyone driving anywhere in California — will be tracked,” Hilton said in a video shared on social media.
The bill’s author, Assemblywoman Lori D. Wilson (D-Suisun City), emphasized that her legislation only requires continued study of transportation funding models, not implementation of a new tax. “It is unfortunate that the Republican Caucus has chosen to continue to contribute to this divided, hyperpartisan era by completely lying and mischaracterizing the bill to be something that it is not,” Wilson said in a statement.
California currently has the highest gas tax in the continental United States at over 61 cents per gallon, generating billions for highway repairs and public transportation projects. In January, the average gas price in California was $4.23 per gallon, second only to Hawaii nationally.
The bill now moves to the California State Senate for consideration. If approved, a final report on implementation options would be due by January 1, 2027.
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