California Proposes Driver Fee for Transportation Funding

California has a transportation funding shortage. Like Texas, the gas excise tax has not kept up with roadway needs as cars became more fuel efficient. 

The Speaker of the California House proposes an approximate $1 per week fee on drivers. The fee is expected to bring in about $1.8Billion per year dedicated to transportation. 

A variety of options exist as to how the fee will be assessed, including:

  • vehicle mileage fee
  • vehicle license fee
  • attach the fee to motor vehicle insurance