California is launching a pilot program to test a pay-per-mile tax system, offering drivers up to $400 to participate. This initiative comes as the state seeks alternative methods to fund highway repairs, traditionally supported by a gasoline tax that now faces a shortfall due to the rise of electric vehicles.
Currently, the gasoline tax funds approximately 80 percent of California’s highway repairs. With the increasing popularity of electric vehicles, which do not contribute to the gas tax, the state is exploring the pay-per-mile model to see if it can recoup some or all of the lost revenue. This pilot program will help lawmakers understand the feasibility and impact of this model.
Drivers interested in participating can sign up for the six-month program at CARoadCharge.com. Once approved, participants will install a usage meter in their vehicles, pay the monthly tax based on their mileage, and complete surveys about their experience.
The program offers potential tax savings for drivers of gas-powered vehicles, who currently pay an average of $300 annually in state gas taxes. Conversely, electric vehicle drivers, who have so far avoided the gas tax, will see an increase in their operational costs as they contribute to the road maintenance fund for the first time.
State transportation officials emphasize that this pilot program is a critical step in ensuring that all vehicle owners contribute fairly to the maintenance of California’s highways. The feedback gathered from this program will be instrumental in shaping future transportation funding policies.
As the program progresses, participants and state officials alike will gain valuable insights into the practicality and equity of the pay-per-mile tax system, paving the way for potential statewide implementation.
