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

Geotab screen on AI concept background
Fleet ManagementJune 17, 2026

What Geotab's New AI Connector Means for Fleets

Fleets can now ask their usual AI assistants questions about maintenance, safety, fuel use, and vehicle performance, using their live Geotab data, and take action on the answers without leaving their preferred AI tool.

Read More →
Image of computer screen with BidBoardX interface

New C.H. Robinson Tool Opens Door to More Predictable Freight

BidBoardX lets carriers search, bid on, and secure committed freight opportunities through a single digital marketplace.

Read More →
Amazon electric cargo bike on New York City street
Fleet ManagementJune 15, 2026

New York City's Microhub Project is Delivering Results

Trucking, last-mile delivery companies, and environmental advocates like what they are seeing so far with New York's microhub program.

Read More →
Ad Loading...
Illustration of hourglass and trucks backed up to a dock
DriversJune 15, 2026

Why Truck Detention Keeps Costing Fleets Time and Money

A 2024 ATRI study found detention affects nearly 40% of truckload stops and costs the industry more than $15 billion annually. Despite the toll on drivers, fleets, and supply chains, the problem remains stubbornly persistent.

Read More →
Panel discussion
Fleet Managementby Deborah LockridgeJune 12, 2026

Time is Running Out to Apply for Exclusive HDT Event

Heavy Duty Trucking Exchange brings fleet managers and suppliers together for the deeper conversations that lead to ideas, partnerships, and solutions. Time is running out to apply for the September event.

Read More →
Empty trailer with worker loading a pallet of cargo
Fleet ManagementJune 10, 2026

Amazon Launches Less-Than-Truckload Freight Offering for All Businesses   

This launch is the latest addition to Amazon Supply Chain Services, a portfolio of supply chain capabilities from Amazon, including freight, distribution, fulfillment, and parcel shipping.

Read More →
Ad Loading...
Stacks of intermodal containers at port with truck driving between them

Import Cargo Volume to See Year-Over-Year Gain Again in June, Then Remain Below 2025 Levels Into Fall

After July, the report predicts a weakening in import volume as consumer uncertainty remains high and the impact of increasing inflation takes its toll.

Read More →
Equity Interest Auction
SponsoredJune 8, 2026

AUCTION OF EQUITY INTEREST IN HEAVY HAUL TRUCKING COMPANY!!

Mark your calendar: June 30, 2026 (10:00 a.m. PDT). A 37.5% ownership interest in MagnaTrans, LLC, a California limited liability company doing business as Magna Transportation Group, will be sold in an in-person and online auction to the highest bidder or bidders under Article 9 of the Uniform Commercial Code. The Rancho Cucamonga-based heavy haul and over-dimensional trucking company operates across California, Oregon, and Arizona.

Read More →
Volvo OTA updates.

Volvo Trucks Adds Unattended Over-the-Air Software Update Capabilities

The latest evolution of Volvo’s over-the-air update technology allows software updates to run while trucks are parked, helping fleets keep vehicles current without disrupting operations.

Read More →
Ad Loading...
Podcast thumbnail illustration
Fleet ManagementJune 4, 2026

How Waste Connections is Using Data, Telematics, and AI

How do you manage and maintain more than 18,000 connected trucks? Data. Lots of it.

Read More →