California Weighs Mileage-Based Road Funding

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California lawmakers are considering a bill that would study replacing the state's gas tax with a mileage-based fee to fund road repairs and infrastructure. While the bill does not create a new tax, Republican lawmakers have criticized it as a potential precursor to a new tax on drivers. The debate highlights the challenges states face as more drivers switch to fuel-efficient and electric vehicles, reducing gas tax revenues traditionally used to maintain roads.

Why it matters

California's gas tax has been a political flashpoint, with Republicans successfully campaigning against it in the past. A mileage-based fee could provide a more sustainable funding source as the state's vehicle fleet becomes more fuel-efficient, but it also risks sparking similar backlash from drivers. The outcome of this debate could set the stage for how other states approach the transition away from the gas tax.

The details

The bill, introduced by Democratic Assemblymember Lori Wilson, would require the state to compile research on mileage-based fees and present it to the legislature by 2027. This follows years of study on the issue by states across the country, as gas tax revenues have declined with the rise of electric and more fuel-efficient vehicles. Some states, like Oregon and Utah, have already implemented pilot programs to test mileage-based fees. The fees are typically collected by having drivers plug a device into their car's diagnostic port to track mileage, or by self-reporting odometer readings.

• The bill was introduced in the California legislature in 2026.
• The research compiled under the bill would be due to the legislature by January 1, 2027.

What they’re saying

What’s next

The California legislature will consider the research compiled under the bill and determine whether to move forward with a mileage-based fee system to replace the state's gas tax.