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If Zero-Emission Cars Cut Gasoline Sales And Tax Revenue, How Will California Replace Them?

  • Eight years ago, the California Legislature and then-Gov Jerry Brown increased gas taxes and license fees, generating over $5 billion annually for road rehabilitation and maintenance.
  • Despite this revenue, California's roads are ranked among the worst in the nation, reportedly 49th according to a libertarian think tank study, while Californians drive nearly a billion miles daily across more than 400,000 lane-miles.
  • California plans to ban the sale of gas-powered cars by 2035, aiming to convert over 30 million vehicles to electric or hydrogen power to reduce emissions and eliminate gas purchases, which will also erase gallonage-based tax revenues.
  • The executive director of the state Transportation Commission, Tanisha Taylor, stated that maintaining the transportation system would cost $758 billion over the next 10 years, while the state anticipates only $541 billion in revenues due to declining gas sales.
  • With California's average gas price at $4.65 a gallon, about $1.50 above the national average and including the nation's highest gas tax ranging between 60 and 70 cents a gallon, new and potentially thorny solutions like mileage fees are being considered to ensure fair and sustainable transportation funding, according to Assembly Transportation Committee Chair Lori Wilson, who stated, "It is a problem.
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If zero-emission cars cut gasoline sales and tax revenue, how will California replace them?

When California motorists fill their tanks, they are often paying the nation’s highest gas prices, an average of $4.65 a gallon currently and about $1.50 above the national average. One component of California’s high gas prices is the state’s gas tax, which ranges between 60 and 70 cents a gallon and is also the nation’s highest. The 10-cent range reflects differences on how indirect levies for climate change policies are calculated. Eight years…

·Sacramento, United States
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La Opinion broke the news in on Tuesday, March 25, 2025.
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