California offers money to drivers to test its gas tax alternative

For decades, California has relied on gasoline and diesel taxes to fund most of its road repairs, but as the state moves more toward electric and hybrid vehicles, officials are trying to find a way to replace this income.

Road improvements are primarily financed by high state excise taxes on fuels. About 80% of highway and road repairs are funded by a gas tax charged at the pump when you buy gas.

On average, Californians pay $300 a year in gas taxes, according to the California Department of Transportation.

The state is offering drivers up to $400 to test a per-mile fee, known as the Road Charge, that officials hope would be a fair and sustainable way to replace the current gas tax.

Here is how the study will take place:

• Those interested in the study can register online until June
• In July, participants from across the state will be selected
• From August to January 2025, participants would drive as they normally would and pay their payments online.
• Participants would also complete two surveys over the course of six months
• Upon completion of all required activities, participants will receive up to $400. A first payment of $100 would be distributed in September, while $300 would be distributed in February 2025.
• Participants can also receive a credit for gas tax or electric vehicle registration fees upon completion of the pilot program.

Essentially, the more a person drives, the more they will pay for highway and road repairs and vice versa, according to the Road Charge website.

More information about the program, including registration information, can be found here.