California governor proposes annual vehicle fee to fund road construction

Updated Jan 15, 2016

California welcome signCalifornia needs more money for its aging roads and bridges, but with so many electric and hybrid vehicle drivers, the state isn’t getting enough funding from fuel taxes to foot the bill. Gov. Jerry Brown has proposed a new plan to try to put more funds back in the transportation budget.

According to CBS San Francisco, Brown has proposed a $65 annual vehicle fee for all vehicles that would increase highway funding by about $2 billion a year. That would be a much-needed boost for the state’s infrastructure funding, especially considering that the California Department of Transportation said last year that the state needs an additional $5.7 billion over the next 10 years.

“The roads we have to deal with. They’re just there, they cost money,” Brown said.

Gas or electric, every car, truck and motorcycle would have to pay the annual fee. Since drivers of traditional gas-powered vehicles already pay the 40-cents-per-gallon gas tax, some local lawmakers want to pump the brakes on the plan.

“Those who have vehicles that don’t use any gasoline aren’t paying the gas tax and they’re getting to use our roads,” Assemblywoman Catherine Baker said. “… We’re taking a lot from Californians for transportation, we’re not spending it very well, we need to reform and not just rely on new revenue streams.”

Baker agrees that the state needs more transportation funding, but she proposed a fee only on electric vehicles.

Brown’s proposal would be enacted in 2017 if it were to pass.