California Looks to Replace Gas Tax Revenue with Per-Mile Fee for Road Repairs

California has long relied on taxes from gasoline and diesel as the primary source of funding for road repairs. However, with the increasing adoption of electric and hybrid vehicles, state officials are now faced with the challenge of finding a new revenue stream. To address this, California is offering drivers the opportunity to participate in a study called Road Charge, which aims to test a per-mile fee system as a fair and sustainable replacement for the current gas tax.

According to the California Department of Transportation, the average Californian pays around $300 a year in state gas taxes. The state hopes that the Road Charge program will provide a viable alternative by allowing participants to pay for road improvements based on their actual mileage. Essentially, the more a driver uses the roads, the more they would contribute towards repairs.

To participate in the study, interested individuals can sign up online until June. In July, participants from across the state will be selected, and from August to January 2025, they will drive as they normally would while making their Road Charge payments online. Throughout the six-month period, participants will also be required to complete two surveys.

Incentives are being provided to encourage participation in the program. Participants can receive up to $400 for their involvement. An initial payment of $100 will be distributed in September, followed by an additional $300 in February 2025. Furthermore, participants may also be eligible for a gas tax or electric vehicle registration fee credit at the end of the pilot program.

The Road Charge website emphasizes the goal of creating a fair and sustainable system for financing road repairs in California. The state acknowledges the changing landscape of transportation and aims to adapt its revenue models accordingly. By embracing innovative approaches like the per-mile fee, California hopes to ensure that its infrastructure remains well-maintained as the shift towards electric and hybrid vehicles continues.

More information about the Road Charge program, including how to sign up, can be found on the program's dedicated website. By soliciting public participation and feedback, California seeks to develop a reliable and equitable source of funding for the long-term sustainability of its roads and highways.