Gas Tax to be Replaced by User Tax in California

California pays the highest gas tax in the USA at 62.47 cents per gallon. The taxes collected are earmarked for road construction, improvements, and maintenance. The tax will be increasing by 7.5 cents per gallon in a few months. You can read more here. By 2035 there won’t be any more gasoline-powered cars sold in California. As of 2020 there were about 700,000 EV in California. That represents a significant amount of gas taxes not paid. Why do EV users get a pass on gas taxes? The answer is they will soon be paying their “fair” share. Starting last year EV’s are being charged an upfront registration fee of $100 which will be followed by an annual registration fee of up to $175 based on the EV’s value. You can read more here.

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