California considers mileage-based fees: what drivers need to know
A potential new system for California drivers could involve charges based on the number of miles driven, though location tracking may not be required, according to recent discussions.
During a recent interview, gubernatorial candidate Xavier Becerra indicated that all options were being considered regarding potential new revenue streams. While his campaign later clarified that he hadn’t proposed the tax, the remarks ignited concerns among California motorists about how driving habits might be monitored.
A pilot program conducted by Caltrans from August 2024 to January 2025 explored various methods for reporting mileage. The program involved 800 participants who tested options including GPS devices, devices without GPS, vehicle technology, and odometer photographs.
Participation in the pilot program did not mandate location sharing, allowing drivers to participate without revealing their travel routes. Roughly 34% of participants utilized GPS devices, while 30% submitted odometer photos.
The pilot program also assessed potential fee structures. Half of the participants were charged 2.8 cents per mile, totaling $280 for 10,000 miles before credits. The other half were assessed individualized rates based on their vehicle’s fuel efficiency. Participants received monthly bills and were credited for existing state gas taxes or electric vehicle fees.
The initiative stems from Senate Bill 339, which was signed into law by Gov. Gavin Newsom in September 2021. The bill aims to explore alternatives to traditional gas taxes as revenue declines.
The proposal has already drawn political opposition. Gubernatorial candidate Steve Hilton has vowed to block a mileage tax if elected, stating, “They never stop gouging you.” Assembly Republican leader Alexandra Macedo criticized the idea, arguing it would disproportionately impact working Californians.
Currently, no statewide mileage tax has been enacted.
Source
“How California could track your miles — and what drivers might pay”
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