In California, the revenue from gas taxes used to maintain roads is decreasing due to the rise in electric vehicles. To address this issue, a new pilot program is being introduced to charge drivers based on how much they drive, replacing the gas tax with a mileage tax. Caltrans spokesperson, Lauren Prehoda, explained that road maintenance costs between $8 to $9 billion annually, mostly funded by gas taxes. With over 1.2 million electric vehicles registered in the state, there is a $200 million loss in gas tax revenues. The proposed California Road Charge program would tax drivers based on their mileage, tracked through various methods like electronic devices or odometer photos. Caltrans will start a pilot program in June to test this system, offering volunteers up to $400 for participation. The final decision to replace the gas tax with the Road Charge will be up to the state legislature.
Vocabulary List:
- revenue (noun): Incomeespecially when of a company or organization and of a substantial nature.
- taxes (noun): Compulsory contributions to state revenuelevied by the government on workers' income and business profitsor added to the cost of some goodsservicesand transactions.
- electric vehicles (noun): Automobiles that run on electric power stored in batteries instead of internal combustion engines.
- pilot program (noun): A small-scale experiment or test of a new project or program.
- mileage tax (noun): A tax calculated based on the number of miles driven by a vehicle.
- road maintenance (noun): The upkeep and repair of roads to ensure their safe and efficient use.
