As an ex-Californian, I’ll admit the state has some of the highest gas prices around. The first time I ever drove across the border, I saw how much a gallon cost, turned around, and filled up in Arizona one last time. Part of the cost is California’s high gas tax. So drivers were thrilled to hear that the state may abolish said tax. But as always, there’s a catch—and Californians will likely find themselves paying just as much at the end of the year.
Why the California gas tax may disappear
Right now, the California gas tax is the highest in the country at about 59 cents per gallon. That’s roughly $300 a year for the average driver. According to ABC7, “California is exploring implementing a California Road Charge, which would replace the gas tax with a mileage-based user fee for drivers who use the roads.”
The logic is simple: “Hybrid and electric vehicles use very little gas, or no gas at all, and pay much less in fuel taxes.” As a result, lawmakers are worried about a $5 billion shortfall by 2035 thanks to EVs . And if California is good at one thing, it’s getting paid. California’s Senate Bill 339 lays it out: the state is testing “the collection of revenue for a road charge program.” In other words, pay-per-mile instead of per gallon.
How the road charge would work
The new program is called the California Road Charge. Drivers pay by the mile instead of by the gallon. “The more you drive, the more you pay,” says the state’s official website. Drivers can track miles through odometer photos, GPS dongles, or their vehicle’s built-in tech.
Caltrans launched a pilot test of the road charge in August 2024, which wrapped up in January. It included mock payments and even cash incentives. Final results are due later this year, and legislators will use them to decide whether to kill the California gas tax for good…