As more drivers turn to zero-emission vehicles and California continues to invest in clean transportation, the state’s gas tax could be a thing of the past.
California’s gas tax, which stands at 59 cents, is the primary source of state funding for highways and roads. However, revenue from the gas tax has fallen.
The most recent report from the National Association of State Budget Officers found that gas taxes raised 41% of transportation revenue in fiscal year 2016, but that percentage had fallen to about 36% in fiscal year 2024.
On average, Californians pay about $300 a year in state gas taxes, in addition to other state fees that support transportation.
To combat that, the state has explored implementing a California Road Charge, which “could replace the gas tax with a mileage-based user fee charged to drivers who use the roads,” according to the program’s website.
Essentially, residents who drive more would pay more, and those who drive less would pay less.
The state says it’s working “to develop a road charge program that is fair, transparent, and sustainable so that it meets our road maintenance needs now and in the future.”
As the state continues to explore alternatives to the gas tax, it continues to invest in clean transportation.
In March, Gov. Gavin Newsom announced that California has more public and shared private electric vehicle chargers installed statewide than gasoline nozzles.
A total of 178,549 public and shared private EV chargers are installed statewide, while the number of gasoline nozzles across the state stands at 120,000.
Results from a pilot program to test the road charge system launched in August 2024 and concluded in January.
