California's road maintenance is primarily funded through gas tax revenues, which are gradually declining due to the increasing adoption of electric vehicles. To address this issue, a pilot program is being launched to replace the gas tax with a mileage tax.
Lauren Prehoda from Caltrans explained that maintaining roads costs between $8 billion to $9 billion annually, with the majority of funds coming from gas taxes. As California has over 1.2 million hybrid or electric vehicles registered, gas tax revenues have decreased significantly.
"On average, Californians pay about $300 a year in state gas taxes," Prehoda said. "EVs have a $100 (annual) registration fee... that's a $200 million a year loss."
To recover this loss, Caltrans proposes the California Road Charge, a tax based on the number of miles driven. This would be tracked through electronic devices, vehicle tracking systems, or odometer photos.
"Everyone has different levels of comfort when we're managing our data between efficiency and privacy, and that's why it's really important to have options from low tech to high tech," Prehoda said.
A six-month pilot program will begin in June to test the Road Charge program. Volunteers can participate, complete surveys, and receive up to $400. The state Legislature will ultimately decide if the Road Charge should replace the gas tax.
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