| With the push towards more fuel-efficient cars and electric vehicles, any decrease in the gasoline excise tax was foreseeable. Yet, the state acts like this is a new, unforeseen problem.
VCTA questions how the state will implement the mileage tax. First, will it replace the 60¢ per gallon state excise tax at the pump? Second, how will mileage be tracked and reported?
We believe the mileage tax will be on top of the 60¢ per gallon excise tax. The legislature decides whether or not to replace the gasoline excise tax, and it’s unlikely that lawmakers will repeal it because so many vehicles continue to use gas.
Reform California estimates the mileage tax will cost the average California driver $900-$1,200 per year in extra taxes. We see no reason to dispute that estimate.
Tracking and reporting the mileage took several forms in areas testing the mileage tax. In some cases, it was self-reported. In others, the state required odometer readings monthly. In others, a device was placed on the vehicle to record the miles.
We see any of these methods as invasive, threatening personal liberty and government overreach into our lives.
Plus, recording the mileage will require another level of bureaucracy in Sacramento. Imagine tracking the mileage of 27 million California drivers monthly. The cost of the bureaucracy would be staggering.
Under the current gasoline excise tax, the taxes are reflected in the price per gallon and paid by the gasoline station owner to Sacramento. The system has been around for over 100 years and works well. Replacing the system would be disruptive at best and chaotic at worst. And, if the gasoline excise tax remains (as we believe) and the new mileage tax is added, we are effectively doubling the bureaucracy.
Finally, VCTA does agree with one premise behind the mileage tax. Electric vehicle drivers avoid paying the gasoline excise taxes yet enjoy using the same roads internal combustion engine drivers use.
Because electric vehicles are purchased predominately by wealthy individuals, the gasoline excise tax has been subsidizing the rich for years. The people who can most easily afford to pay for road repairs are getting a free ride paid for by those less able to purchase an electric vehicle. This inequity must stop. The wealthy should not expect working people to subsidize them. |
