Hold on to your wallets, because there’s a lot of buzz—and misinformation—about California potentially replacing its gas tax with a mileage-based fee. But here’s the truth: no such tax has been passed, and the state is far from implementing it. Despite this, social media has been ablaze with claims that California is on the brink of charging drivers by the mile. So, what’s really going on?
Last week, the California Assembly approved AB 1421, a bill that extends a decades-long study to explore whether a mileage-based fee system could replace the state’s gas tax. This isn’t a new tax—it’s a continuation of research to determine if such a system could help fund roads and transportation costs as California phases out oil and gas over the next few decades. The bill directs the California Transportation Commission to gather data from state, local, and private entities and submit a report to the Legislature by January 1, 2027. Next, the proposal heads to the Senate for hearings and a full vote.
But here’s where it gets controversial: Republicans are sounding the alarm, arguing that this study is a stepping stone to a full-blown mileage tax. Assemblyman Carl DeMaio, R-San Diego, bluntly stated, ‘We know the real intent here—it’s a mileage tax.’ California already has some of the highest driving-related fees in the nation, and critics worry this could add another financial burden on drivers.
On the flip side, Assemblymember Lori Wilson, D-Suisun City, emphasizes that the bill is about making informed decisions for the future. ‘How do we ensure all motorists pay their fair share while protecting affordability and privacy?’ she asked. Wilson assured that town halls will be held statewide to hear from commuters, workers, and businesses before any policy decisions are made. She also pledged to avoid double-taxing motorists if a mileage-based fee ever moves forward.
And this is the part most people miss: Not every study leads to a new law. While the Capitol Annex project is an example of a study turning into reality, many others fizzle out. Plus, this study comes with a price tag—hundreds of thousands to low millions of taxpayer dollars, according to the Assembly Appropriations Committee.
So, is California inching toward a mileage tax, or is this just a precautionary study? That’s the million-dollar question. What do you think? Is a mileage-based fee a fair way to fund transportation, or is it another unnecessary burden on drivers? Let us know in the comments!
For more in-depth coverage of California’s top political and policy issues, tune in to KCRA 3’s ‘California Politics 360’ with Political Director Ashley Zavala every Sunday at 8:30 a.m. Stay informed, and don’t forget to subscribe to our newsletter and YouTube channel for the latest updates.
