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.

• 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.

Ad Loading...

• 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

Daimler-Class8 partnership.
Fleet Managementby News/Media ReleaseFebruary 2, 2026

DTNA Partners with Class8 to Expand Digital Services for Freightliner Owner-Operators

A new partnership brings free wireless ELD service plus load optimization and dispatch planning tools to fourth- and fifth-generation Freightliner Cascadia customers, with broader model availability planned through 2026.

Read More →
SponsoredFebruary 1, 2026

Reducing Fleet Downtime with Advanced Diagnostics

This white paper examines how advanced commercial vehicle diagnostics can significantly reduce fleet downtime as heavy duty vehicles become more complex. It shows how Autel’s CV diagnostic tools enable in-house troubleshooting, preventive maintenance, and faster repairs, helping fleets cut emissions-related downtime, reduce dealer dependence, and improve overall vehicle uptime and operating costs.

Read More →
SponsoredFebruary 1, 2026

Stop Watching Footage, Start Driving Results

6 intelligent dashcam tactics to improve safety and boost ROI

Read More →
Ad Loading...
M&A illustration with Werner and FirstFleet logos
Fleet Managementby Deborah LockridgeJanuary 29, 2026

Werner Expands Dedicated Fleet Nearly 50% With FirstFleet Acquisition

The $283 million acquisition of FirstFleet makes Werner the fifth-largest dedicated carrier and pushes more than half of its revenue into contract freight.

Read More →
Bobit Business Media B2X Rewards.
Fleet Managementby News/Media ReleaseJanuary 29, 2026

Bobit Business Media Launches B2X Rewards Engagement Program

B2X Rewards is a new, gamified rewards program aimed at driving deeper engagement across BBM’s digital platforms, newsletters, events, and TheFleetSource.com.

Read More →
Trucking Trends series graphic
Fleet Managementby Deborah LockridgeJanuary 29, 2026

AI is Reshaping Trucking in 2026, from the Back Office to the Shop

Trucking’s biggest technology shifts in 2026 have one thing in common: artificial intelligence.

Read More →
Ad Loading...
Column graphic illustration with Deborah Lockridge head shot and a small fleet truck in the background
Fleet Managementby Deborah LockridgeJanuary 27, 2026

Why Small Trucking Fleets Are Still Standing [Commentary]

Why discipline, relationships, and focus have mattered more than size for smaller trucking fleets during the freight recession.

Read More →
Fleet Managementby Deborah LockridgeJanuary 23, 2026

Cargo Theft Is Surging. A Bill in Congress Could Help. [Video]

Cargo theft losses hit $725 million last year. In this HDT Talks Trucking Short Take video, Scott Cornell explains how a bill moving in Congress could bring federal tracking, enforcement, and prosecutions to help address the problem.

Read More →
CargoNet infographic showing 2025 cargo theft trends
Fleet Managementby Deborah LockridgeJanuary 22, 2026

Cargo Theft Losses Jump 60% in 2025 as Criminals Target Higher-Value Freight

Cargo theft activity across North America held relatively steady in 2025 — but the financial damage did not, as ever-more-sophisticated organized criminal groups shifted their cargo theft focus to higher-value shipments.

Read More →
Ad Loading...
Phillips Connect -- McLeod smart trailer TMS.
Fleet ManagementJanuary 22, 2026

Phillips Connect, McLeod Integrate Smart Trailer Data into TMS Workflows

A new partnership between Phillips Connect and McLeod allows fleets to view trailer health, location, and cargo status inside the same McLeod workflows used for planning, dispatch, and execution.

Read More →