California, the world's fourth largest economy, to charge road tax as people go electric, citizens furious
California, the fourth largest economy in the world, is planning to introduce a new road charge that would charge drivers per mile driven, a plan that has drawn criticism from California residents and politicians throughout the state, as per a report.
California Eyes Per-Mile Road Tax
The new proposal comes as California is expected to have a $5 billion shortfall in gas tax revenue over the next decade, according to a CBS8 News report. This is because electric and hybrid cars are quickly taking over from gasoline-powered vehicles, as per the report. The state's main source of revenue to fund about 80% of the roadwork, like highway maintenance, is funded via a 59-cent per gallon gas tax, which is the highest in the country, and is slipping away, as per the CBS8 News report.
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What Is the State Testing?
With the aim of addressing the funding gap, the California Department of Transportation (Caltrans) has recently tried a pilot program to understand this potential new fee system, which could replace the current gas tax, as reported by CBS8 News.
During the trial program, many approaches were tested, like a flat fee of 2.8 cents per mile and an individualised fee based on a vehicle's fuel economy, as reported by CBS8 News. Even different methods of reporting mileage to the state were also considered, such as odometer readings and special plug-in devices to measure miles travelled, according to the report.
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Why the Road Charge Now?
Chair of UCLA's Department of Urban Planning, Michael Manville, explained that, "The purchasing power of the fuel tax, which is the main way we finance transportation infrastructure has been steadily declining," as quoted in the report. Manville also pointed out that, "We have a lot more electric cars, we have a lot more hybrid cars, and just the typical new car gets better gas mileage," quoted CBS8 News.
Californians Push Back
However, the latest proposal faced disapproval from many Californians, like a San Diegan, Gail Hofilena expressed her opposition, by saying, "Not for it. I'm a hard 'no' on everything. I got to save my money where I can," as quoted in the report.
While, assembly member Carl DeMaio, who previously had led the opposition to a local mileage fee, criticised the state-wide proposal, saying, "A mileage tax in California is a money grab, let's just be very clear," as quoted by the CBS8 News report.
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DeMaio estimated that the average Californian might have to pay $900 to $1200 per year under this new system and argued that it would disproportionately affect working and lower-income families with longer commutes, as reported by the CBS8 News report.
He explained that, "A lot of working families, poorer, families, have a longer commute, so they will actually pay a higher mileage tax," adding, "It's very regressive. It's unfair," as quoted in the report.
DeMaio also voiced out his scepticism regarding the state's claim that the road charge would replace the existing gas tax, as he said, "That's nonsense," adding, "These people would never give up a tax. They're just going to add an additional one," as quoted in the report.
What's Next?
However, it will be decided by the State Legislature whether the road charge would replace the fuel tax, reported CBS8 News.
According to the report, Caltrans is expected to release the results of its recent pilot program later this year, which will likely inform the ongoing debate over this controversial proposal.
FAQs
How much tax could I be charged under this plan?
Estimates suggest anywhere from $900 to $1,200 per year, depending on how much a person drives, as reported by CBS8 News.
Why is California proposing a road charge now?
Because the gas tax is no longer bringing in enough money, mainly due to more electric and fuel-efficient cars on the road, as per the CBS8 News report.
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