California is exploring a new approach to combat declining gas-tax revenues with a potential ‘road charge’ pilot program. This initiative would involve charging vehicle owners based on the number of miles driven, irrespective of the fuel type used. While the specific rate is yet to be determined, estimates suggest it could range from US$0.02 to $0.04 per mile (CDN$0.017 to CDN$0.034 per km).
The shift towards more fuel-efficient and zero-emission vehicles has led to a decrease in gas tax contributions, posing challenges for funding road infrastructure. In response, California is proposing the implementation of a Road Charge system, which would replace state fuel taxes with a fee linked to mileage. The state is seeking participants for a pilot project to evaluate the feasibility of this model.
The concept behind the Road Charge is akin to utility billing, where individuals pay based on their consumption. Advocates argue that this approach offers a fair and sustainable means to support road maintenance, preservation, and enhancements for all residents. By transitioning from the gas tax to a mileage-based user fee, the program aims to ensure equitable contributions towards road usage, regardless of vehicle efficiency.
