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California Task Force Evaluates Mileage-Based Road Charge to Replace Gas Tax

February 21, 2025 | Transportation Commission, Agencies under Office of the Governor, Executive, California


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California Task Force Evaluates Mileage-Based Road Charge to Replace Gas Tax
California's transportation funding system is at a crossroads, as officials acknowledge the growing ineffectiveness of the current gas tax structure. During the California Transportation Commission meeting on January 23, 2015, leaders highlighted the urgent need for a new revenue model to support the state's transportation infrastructure.

With revenues from the gas tax declining due to advancements in vehicle fuel efficiency and technology, the commission is exploring a pilot program for a mileage-based revenue collection system. This initiative aims to assess the feasibility of a road charge as a viable alternative to the traditional gas tax. The federal gasoline tax, last raised in 1994, has lost significant value, now equating to just 9 cents per gallon when adjusted for inflation.

The commission emphasized the importance of collaboration and open dialogue among stakeholders as they navigate this complex issue. Privacy, feasibility, and security are key concerns that will be addressed in the upcoming discussions. The meeting also underscored the rapid evolution of the automotive industry, with a notable increase in zero-emission and hybrid vehicles on California roads.

As the state prepares for a future that may include autonomous vehicles, officials are tasked with developing solutions that align with changing transportation dynamics. The commission's work is critical not only for California but also serves as a model for other states and the federal government, as they look to modernize transportation funding in an era of significant technological change.

The next steps involve gathering insights from various stakeholders, including the California Trucking Association, which expressed a commitment to participating in discussions about the potential impacts of a new road user charge on the diverse trucking industry. The commission's efforts will be closely monitored as they seek to ensure sustainable funding for California's transportation needs.

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