Monday, September 16, 2024

California Considers Placing a Mileage Tax on Drivers – Watts Up With That?

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KPIX | CBS NEWS BAY AREA

Transcript

The state says it needs more money for road repairs, and the gas tax just isn’t cutting it. KPIX Five’s Phil Matier reports on Sacramento wanting to take a look at your odometer. Phil.

One of the biggest selling points for electric cars and hybrids is that they save you big money at the pump – but at what cost to the rest of us? If you own an older vehicle that is fueled by gas, you’re paying gas tax to maintain the roads. Someone who has an electric vehicle is paying much less than you but they are still using the roads. And that’s one reason why State Senator Scott Wiener and others are saying that when it comes to road taxes, it’s time to start looking at charging you by the mile rather than by the gallon. “People are going to use less and less gas in the long run,” says Wiener. And less gas means less gas tax and less money for road repair. “We want to make sure that all cars are paying to maintain the roads,” Wiener adds.

One idea would be installing devices that would clock your mileage every time you pull up to the pump or electric car charging station. Or put a tracker on every car. “The reality is that if you have a smartphone the data of where you are traveling is already in existence,” Wiener explains.

None of this is sitting well with Joshua Li, owner of a super hybrid BMW. Matier asks, “How much are you saving by not using gas?” Li responds, “I save around $200 a month.” Matier then asks, “How would you feel if they charged you anyway?” “I’m definitely not happy about that,” says Li.

“If you buy a small car that gets great fuel economy, we don’t get enough money to repair the roads – and there is a pothole right there. But the fact of the matter is, people are buying trucks – like that vehicle there and that vehicle there,” says Randy Rentschler of the Metropolitan Transportation Commission. He suggests that the real answer is to raise the gas tax and up the fee for electric cars.

“And what do the people we talked to, tanking up today say?” Matier continues. “I drive all over Northern California for work, so definitely it would be a problem,” says one motorist. “These are all consumption taxes – just taxing poor people,” comments another.

So, assuming a “mileage fee” plan goes ahead, what would happen to the gas tax? Would we still pay that? Thanks, Phil.

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