Senator Mark DeSaulnier’s Senate Bill 1077 passed through the Senate Transportation and Housing Committee 9-0 on April 29 which would create a mileage based fee in California to replace the states existing fuel excise tax.
The SB 1077 as currently written, would establish a Mileage-Based Fee Pilot Program (study only) which would tax drivers for every mile they drive—modeled after pilot programs in Oregon and Washington.
The state gasoline tax of 52.9 cents per gallon could be replaced with a “miles driven fee” of $0.05 cents or so per mile driven (this figure is arbitrary–this bill has no mention of an amount). Under DeSaulniers Bill, a still-to-be-determined California city would begin taxing motorists in January 2016.
The longer your commute, the more you would pay according to the Bill.
The Bill is designed to make up revenue due to fuel-efficient vehicles which is reducing the amount of gas tax dollars which are not coming in like they used to.
Should the Bill be adopted, the findings would be presented no later than June 30, 2017.
Editors note: Under this proposal, this is a dry run and no fees will be collected, however, it will highlight what could be collected in the future. It would also show issues, privacy concerns, feasibility concerns. There is no plans to collect revenue from this pilot at this time. It would also not double-tax folks by paying gas tax and fee-per-millage, it would be one or the other.
Here is a look at the Bill:
LEGISLATIVE COUNSEL’S DIGEST
The people of the State of California do enact as follows:
Chapter 7 (commencing with Section 3090) is added to Division 2 of the Vehicle Code, to read:
CHAPTER 7. Vehicle-Miles-Traveled Mileage-Based Fee Pilot Program
(a) The department Transportation Agency shall develop and implement, develop, by July 1, 2015, January 1, 2016, a pilot program designed to assess the following issues related to implementing a vehicle-miles-traveled (VMT) fee in California to explore various methods for using a mileage-based fee (MBF) to replace the state’s existing fuel excise tax. The agency, at a minimum, shall assess the following issues related to implementing an MBF in California:
Chapter 7 (commencing with former Section 3100) of Division 2 of the Vehicle Code is repealed.