California is offering drivers money to test its alternative to the gas tax

For decades, California has depended on taxes from gasoline and diesel to provide most of the money for road repairs, but as the state pivots more towards electric and hybrid vehicles, officials are trying to figure out how to replace that income.

Road improvements are mainly financed through the state’s high excise tax on fuels. Approximately 80% of highway and road repairs are funded by a tax on gasoline charged at the pump when you buy gas.

On average, Californians pay $300 a year in state 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 Road Charge, which officials hope would be a fair and sustainable way to replace the current gas tax.

Here’s how the study will work:

• Those interested in the study can sign up online until June
• In July, participants throughout the state will be selected
• From August until January 2025, participants would drive as they usually would and pay their Road Charge payments online
• Participants would also complete two surveys throughout the six months
• Once all the required activities are completed, participants will receive up to $400. An initial payment of $100 would be distributed in September, while $300 would be distributed in February 2025.
• Participants may also receive a gas tax or electric vehicle registration fee credit at the end of the pilot program

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

More information about the program, including sign-up information, can be found here.