California Explores Mileage Tax Options Amidst Political Debate
A state pilot program tested various methods for tracking vehicle mileage and collecting road usage fees, sparking controversy among potential gubernatorial candidates.
California drivers may soon face a mileage-based road tax, a concept that gained renewed attention following gubernatorial hopeful Xavier Becerra's comments suggesting "everything was on the table" regarding potential revenue sources. While Becerra's campaign later clarified he had not proposed such a tax, the discussion highlighted how the state might implement and track such a system.
A six-month pilot program conducted by Caltrans from August 2024 to January 2025 explored several methods for drivers to report their mileage, addressing privacy concerns by making location tracking optional. The experiment involved 800 participants testing four reporting techniques: using a GPS-enabled device, employing a device without GPS, utilizing a vehicle's built-in technology to transmit data, or submitting photographs of their car's odometer.
Of the participants, 34% opted for GPS-enabled devices, while 30% chose to submit odometer photos. The remaining participants utilized onboard vehicle technology or non-GPS devices. Location data sharing was an optional feature, allowing drivers to report mileage without disclosing their travel routes.
The pilot program also evaluated potential fee structures. Half of the participants were charged a flat rate of 2.8 cents per mile, which would amount to $280 for someone driving 10,000 miles before any credits. The other half were subjected to individualized rates based on their vehicles' federally rated fuel efficiency. Participants received monthly billing statements and were credited for state gas taxes or electric vehicle fees they had already paid.
This mileage-based tax exploration originated from Senate Bill 339, authored by state Sen. Scott Wiener and signed into law in September 2021. The legislation directed California to investigate methods for collecting road charges as revenue from traditional gas taxes declines.
The prospect of a mileage tax has already ignited a political debate. Republican gubernatorial candidate Steve Hilton has stated he would veto such a tax if elected, criticizing it as an additional burden on taxpayers. Similarly, Assembly Republican leader Alexandra Macedo argued that a mileage tax would disproportionately affect working-class Californians.
Currently, no statewide mileage tax has been officially approved in California.