Falling Gas Tax Revenue Has California Lawmakers Considering Mileage Tax Plan

CBS SF Bay Area ^ | January 25, 2015 | Staff

[C19fan]

With an increase in electric and hybrid vehicles along with better fuel-efficient vehicles, changing Bay Area drivers habit are posing a serious problem for state coffers. As motorists use less and less gas, gas tax revenues to pay for state highways, roads and bridges shrink. Meanwhile, as gas prices fall, so does the sales tax generated by fuel sales. In California, among the taxes collected on fuel is a 2.25% sales tax on gasoline and a 9.67 percent tax on diesel.

[Opinionated Blowhard]

So the gas tax really was about squeezing Californians for as much tax revenue as possible and the statements about taxing gas to encourage alternatives forms of transportation were just BS. I’m shocked.

[jttpwalsh]

I’ll take”unintended consequences” for $1000, Alex

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They had a “Day without Mexicans” here,in Calif., a few years back. The idea was that all the Mexicans would take the day off from work, and we would realize how important they were, and beg for their return. Talk about unintended consequences; the talk radio shows were flooded with callers who reported that they were barely inconvenienced by their absence, but loved the fact that the commute time was reduced, by an average of 25%.

Last time they pulled that stunt.

[Utilizer]

*laugh* Good on ya! I think the correct definition is actually “Fuel Tax”, not “Sales Tax”. If it were a normal sales tax it would be the exact same amount as any other normally-taxed items.

On a side topic, I also think all retailers including restaurants and fast-food places should put up notices about how they had to raise their prices by a specific percentage as a result of the mandatory 0bombacare tax so that everyone can directly see how they are paying for this “free” so-called benifit.

[Rusty0604]

Yes, they charge a sales tax. so that’s a sales tax on top of the other taxes.

[TexasGator]

“Talk about unintended consequences; the talk radio shows were flooded with callers who reported that they were barely inconvenienced by their absence, but loved the fact that the commute time was reduced, by an average of 25%.”

They weren’t from L.A.

[jttpwalsh]

They weren’t from L.A.

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Thanks for your reply.

Respectfully, LA area (wide geographical range). John and Ken show on KFI 640AM was where the brunt of the calls were fielded.

[Rusty0604]

They do charge a sales tax on fuel. It’s not the same rate as other sales taxes, but it is a sales tax on top of the other fuel taxes.

[Tenacious 1]

It’s been a while since I lived in CA (2000). But back then, there was a gross poluters tax and every vehicle had to have an emmisions test at a mechanic that was connected right to the DMV. It was fool proof. I had an old truck and was told before we began that it wouldn’t pass. But I could have the more expensive test run and I wouldn’t have to pay the extra tax. It was a good deal for me.

They proceeded to enter my vehicle info into a system while they hooked up another vehicle. Brilliant. I passed and got my sticker. Apparently this was pretty common. I may have been fleeced for an extra $50. But I didn’t pay the tax on a 10 year old truck.

[zerosix]

Great news - the money drain continues in CA.

Invitation, if you have a job, a career or talent, have money invested or at least in your IRA, can prove you will not be a Welfare, food-stamp recipient, are a proved pro-life, pro-family (normal that is) conservative, we welcome your move to KS!

[SkyDancer]

How about those mileage counters that trucks have on their wheels. That way even the electric cars are counted along with their gas guzzling brothers .... maybe a counter on the RPM gauge so you’re taxed even when the engine is running. Then they can put a device on .......

[Oldhunk]

Is the writer of this piece that dumb or just a liar like most Democrats? The California gas tax is a fixed amount per gallon. If anything, revenue would be rising with people driving more with the cheaper gas.

[thackney]

In California: The sales tax on gasoline is 2.25% plus applicable district taxes. It is included in the pump pricing.

http://www.api.org/~/media/files/statistics/statemotorfuel-onepagers-jan-2015.pdf

[Don Corleone]

Create a mileage tax and people will likewise figure out a way to reduce its impact.

Tar,feathers and a redwood rail come to mind!

[thackney]

In California, and a few other states, there is both fixed per gallon taxes and percentage of cost taxes.

http://www.api.org/~/media/files/statistics/statemotorfuel-onepagers-jan-2015.pdf

[MrB]

Ya know, that’s what I was thinking...
The tax is per gallon, not per dollar.

[Luke21]

“Is the writer of this piece that dumb or just a liar like most Democrats?”

Whoever it is, didn’t want to be known. Written by “staff.”

[Oldhunk]

Thanks. I missed that.

[thackney]

California hides a few taxes associated with the gasoline. If they put it all in one clear chunk, they would get more complaints.

[RightGeek]

“The problem with socialism is that eventually you run out of other people’s money.”

[vette6387]

“The mileage tax is a double taxation.”

While I think it’s a bad idea for a number of reasons (not the least of which is the government being able to track your movements), as I understand the proposal, the milage taxation was to be in place of the per gallon taxes. The problem will not be solved by any alternative mechanism for taxation so long as the legislatures can confiscate the money derived and spend it on other things like vote buying.
The other thing that needs to be addressed is the impact of trucking on our highways. The way they are being built today, they would pretty much last indefinitely if they only carried automobiles and light trucks. An 80,000 lb. GVW truck does a whole lot more damage that a 3,000 lb. car or a 6,000 lb. pickup.