California Considers Mileage Tax as Alternative to Gas Tax

State lawmakers debate shifting transportation funding from gas tax to per-mile charge as electric vehicle adoption rises.

Jan. 31, 2026 at 3:31am

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California lawmakers are considering a proposal to study the potential implementation of a mileage-based road charge as an alternative to the state's current gas tax. The move comes as the state anticipates a decline in gas tax revenue due to the growing adoption of electric and other non-gasoline powered vehicles.

Why it matters

The debate over a road charge highlights the challenges states face in maintaining transportation funding as vehicle technology evolves. Traditional fuel taxes are becoming less reliable revenue sources, necessitating exploration of alternative models to fund road and highway projects.

The details

The proposal, approved by the California Assembly, would direct the state's Transportation Commission to study the potential effects of implementing a road charge system that levies a fee based on the number of miles driven. Republican lawmakers have voiced concerns that a road charge could place an additional financial burden on residents, especially those in rural areas or with long commutes. Assemblymember Wilson has indicated she will seek an amendment to ensure residents are not subjected to both a gas tax and a road charge, clarifying that the bill's current purpose is to initiate a study, not enact a new charge.

  • On Thursday, the California Assembly moved to direct the state's Transportation Commission to study a potential road charge system.
  • In 2023, Hawaii became the first state to legally implement a road charge program, specifically for electric vehicle drivers, to begin in 2028.

The players

California Transportation Commission

The state agency that would be directed to study the potential implementation of a road charge system under the proposed legislation.

Heath Flora

Assembly Republican Leader who has voiced concerns that a road charge would place an additional financial burden on Californians.

Lori D. Wilson

Assemblywoman who has defended the bill, stating it is intended to facilitate a research-driven analysis of transportation funding models.

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What’s next

If passed by the California State Senate, the California Transportation Commission would then begin the study outlined in the legislation. The findings of that study could then inform future legislative decisions regarding transportation funding in the state.

The takeaway

As California considers this potential shift in transportation funding, the debate over a mileage-based system highlights the broader challenge states face in maintaining reliable revenue sources for road and highway projects as vehicle technology continues to evolve.