California is investigating taxing drivers based on the number of miles they travel.
By : Vidya
California is considering replacing its gas tax, the highest in the U.S. at 59 cents per gallon, with a mileage-based road charge program due to the rise in zero-emission vehicles that do not contribute to gas tax revenues.
The state launched a pilot program in August 2024 to test this system, which concluded in January 2025, with results expected later this year.
Gas taxes currently fund millions of dollars in road repairs, but revenue has declined as electric vehicle adoption grows and inflation raises transportation costs.
Legislative analysts predict a $5 billion (64%) drop in gas tax collections by 2035 if California meets its climate goals, which include mandating all new passenger cars sold to be zero-emission vehicles by 2035.
This shift mirrors trends in other states like Pennsylvania, where gas tax revenues have also fallen significantly.