Heavy Duty Trucking Logo
MenuMENU
SearchSEARCH

California Launches Study to Look at Mileage-Based Tax

The California Department of Transportation has launched a nine-month pilot program to test a pay-by-the-mile financing model to possibly replace the gas tax in the state.

by Staff
July 7, 2016
California Launches Study to Look at Mileage-Based Tax

Photo via California Road Charge Program

2 min to read


Photo via California Road Charge Program

The California Department of Transportation has launched a nine-month pilot program to test a pay-by-the-mile financing model to possibly replace the gas tax in the state.

The Road Charge Pilot Program currently has 5,000 volunteers taking part in the study and will examine the viability of charging people per mile instead of per gallon as a more representative way to fund infrastructure costs.

Ad Loading...

The gas tax is currently the primary source of funding for annual maintenance to California’s state highway system, but increasing fuel efficiency standards have decreased its effectiveness. The increasingly smaller funding source has left the state $5.7 billion short in annual maintenance needs, according to Caltrans.

Volunteers in the program are being given different options to report mileage so the state can determine which recording method is most effective:

• A time permit option will allow users unlimited road use for a specific period of time, such as a year, month or week.

Ad Loading...

• A mileage permit option gives a driver a block of miles to use based on expected use of California’s roads.

• The odometer charge option requires the driver to submit periodic manual odometer readings and pay based on the information.

• An automated mileage reporting option will give drivers a choice of in-vehicle technology to invoice the amount of miles driven. This can be attained with or without general location data that reports mileage traveled to a third-party account manager.

Once the trial program is over the California Transportation Agency will submit a report to the legislature by July 2017 and the California Transportation Commission will provide its recommendations by December 2017. The state legislature will make the final decision on whether and how to enact a full-scale permanent road charge program.

For more information on the program, click here

More Fleet Management

The Cyber Stop column header with photo of a smiling driver in truck with a laptop and a wi-fi icon
Fleet ManagementAugust 21, 2026

Public Wi-Fi Cybersecurity Risks: How Truck Drivers and Fleets Can Protect Their Data

Public Wi-Fi can expose truck drivers and fleets to credential theft, malware, and other cyber threats. Here’s how to reduce the risk on the road.

Read More →
Woman in white blazer superimposed on background showing a row of Fraley & Schilling truck, plus the HDT Truck Fleet Innovators 2026 logo
Fleet Managementby Deborah LockridgeAugust 19, 2026

For Nicky Cupp, Fleet Innovation Starts With Frustration

HDT Truck Fleet Innovator Nicky Cupp turns everyday pain points at Fraley & Schilling into opportunities for better technology and smarter processes.

Read More →
Headshot of Adam Buttgenbach with a Pepsi-branded Tesla Semi in the background
Fleet Managementby Deborah LockridgeAugust 18, 2026

Adam Buttgenbach’s Approach to Electric Trucks: Start With Where They Fit

HDT Truck Fleet Innovator Adam Buttgenbach helped PepsiCo build one of North America’s largest EV fleets by focusing on where electric trucks make operational sense.

Read More →
Ad Loading...
Deen Albert in collared shirt superimposed on background showing a Grand Island Express blue tractor pulling a trailer, plus the HDT Truck Fleet Innovators 2026 logo
Fleet Managementby Deborah LockridgeAugust 17, 2026

Deen Albert: Let Automation Do the Math, People Make the Decisions

HDT Truck Fleet Innovator Deen Albert makes sure people are still at the heart of operations at Grand Island Express, even while adopting artificial intelligence tools. AI-assisted dispatch helped boost revenue 25% with the same number of trucks.

Read More →
Illustration of computer screen with Trimble Arc Agent screen
Fleet Managementby Deborah LockridgeAugust 14, 2026

Trimble’s New AI Agent Takes Aim at Fleet Back-Office Busywork

Arc Agent works across Trimble TMS products to automate repetitive tasks such as freight orders, maintenance, invoices, fuel costs and more.

Read More →
Photos of three men and two women with HDT Truck Fleet Innovators 2026 logo
Fleet ManagementCover Storyby Deborah LockridgeAugust 13, 2026

How HDT’s 2026 Truck Fleet Innovators Are Rethinking Fleet Operations

Meet five trucking leaders who are challenging assumptions, solving operational problems, and putting innovative ideas to work.

Read More →
Ad Loading...
Graph showing how contract rates and spot rates converged in July
Fleet Managementby StaffAugust 12, 2026

Tight Trucking Capacity Pushes Rates Higher Even as Freight Volumes Fall

“Spot rates moving ahead of contract rates have historically signaled a tightening market, but we haven’t seen a capacity-driven market quite like this one,” said DAT's Dean Croke.

Read More →
Line graph showing container import volumes
Fleet Managementby StaffAugust 7, 2026

Import Cargo’s Early Peak Season is Winding Down

There was an early start to peak season this year at the nation's gateway ports, as retailers brought in merchandise ahead of tariff changes in late July and responded to other supply chain uncertainties,

Read More →
Blue infographic with graphs illustrating cargo theft trends in the second quarter of 2026
Fleet Managementby Deborah LockridgeAugust 6, 2026

Fewer Cargo Thefts, Bigger Losses: Criminals Target Higher-Value Loads

CargoNet says organized theft rings are stealing fewer shipments but choosing more valuable freight, including metals and technology, resulting in record losses.

Read More →
Ad Loading...
Illustration of a chalkboard with a hand drawing an arrow curving away from a partially erased straight arrow with the words "Embracing Change," the Heavy Duty Trucking Logo and the "cover feature" graphic.
Fleet Managementby Deborah LockridgeAugust 1, 2026

How Innovative Trucking Leaders Turn Change Into an Advantage

As the pace of change accelerates in trucking, the fleets that adapt best have more than the latest technology. They have cultures that embrace improvement.

Read More →