California is offering money to drivers interested in participating in a pilot program to test an alternative to the gas tax.
As California shifts its focus to electric vehicles (EVs) and hybrid cars, officials are finding ways to replace the revenue that has traditionally come from taxes on gasoline and diesel to fund road maintenance in the state.
Replacing Hefty Gas Tax as California Shifts to Electric Vehicles
According to KTLA 5, California's high hefty fuel excise tax is the primary revenue source for road construction and maintenance projects. A portion of the money for highway and road repairs comes from the tax that drivers pay when filling their gas tanks.
The California Department of Transportation reported that, on average, residents pay $300 yearly in state gas taxes. In the hope of finding a fair and sustainable way to replace the current gas tax, California is now offering drivers up to $400 to try out a per-mile fee program called "Road Charge."
How to Participate in the California 'Road Charge' Progam
The program works by charging a fee based on the number of miles the motorist drives monthly, and it would apply to both gas and electric vehicles in the state.
Registration for the trial is open until June, and interested individuals can enroll online. Participants throughout the state will be chosen in July. From August until January of next year, participants will have to drive as they usually would and pay their Road Charge payments online.
They would also need to complete two surveys within six months. Participants will receive up to $400 after completing all the required activities. The first payment of $100 will be made in September, and $300 will be given in February next year.
After the pilot program ends, participants may also receive a gas tax or EV registration fee credit. Road Charge website noted that, in essence, the more Californians drive, the more they would pay for the repairs of highways and roads and vice versa.
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