California is considering replacing its gas tax with a mileage-based user fee, known as the California Road Charge, due to the growing number of zero-emission vehicles. Currently, California has the highest gas tax rate in the country at 59 cents per gallon, generating significant revenue for road repairs. However, as electric vehicle sales increase, forecasts suggest a dramatic drop in gas tax income, with predictions of a 64% reduction by 2035. A pilot program tested the road charge system, with results expected this year to help shape future transportation funding.
California's gas tax, the highest in the U.S., may soon be replaced by a mileage-based user fee due to increasing zero-emission vehicles and falling gas tax revenues.
California is exploring a system where drivers are charged by the mile rather than by gas usage, as the rise in electric vehicles threatens the viability of traditional gas tax revenues.
Legislative analysts predict a significant drop in gas tax collections by 2035, projecting a 64% decrease as zero-emission vehicles become more prevalent and climate goals are met.
The recent pilot program testing the road charge system in California is crucial, with results expected later this year to inform future legislation on transportation funding.
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