Watch CBS News

California Seeks To Replace Gas Tax With Pay-By-The-Mile Plan

SAN FRANCISCO (CBS SF) -- California drivers may soon be paying for use of state roads in a pay-by-the-mile program that would replace the state's gas tax, which is used to fund highway and transportation programs.

Caltrans is looking to bridge a nearly $6 billion budget shortfall exacerbated by diminishing gas tax revenues. More electric vehicles and hybrids on the roads mean the gas tax isn't coming close to filling the state's coffers.

"We have to come up with some other way to fund it because what we have right now, simply isn't sustainable," said Caltrans spokesman Bob Haas

At the same time, our infrastructure is nearing the end of its lifespan unless major repairs or overhauls are made.

So, to fix it, a major overhaul is being tested for the funding process: goodbye gas tax, hello pay-per-mile.

The pilot program started Tuesday. Volunteer drivers are helping work out the bugs and gather data. No money will change hands while volunteers test out different methods for paying for mileage, such as time or bulk mileage permits, odometer readings, and GPS or smartphone data.

It's too early to tell how much money this will cost drivers - or provide to the state. But one thing is certain: everyone, no matter what you drive, will feel the effects.

Drivers who would like to volunteer for the pilot program and help determine the best mileage reporting method can visit the California Road Charge website.

View CBS News In
CBS News App Open
Chrome Safari Continue
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.