Mileage tax proposal

To make my point, I share another quick episode from my time on the council. I once attended a SamTrans meeting when it was revealed few, if any, of the staff or board members used public transportation. One gentleman admitted to living in Redwood City near El Camino Real. Nevertheless, he chose to drive to the SamTrans building in San Carlos every day rather than take the bus or train. His reason? As with most of us, he had kids to pick up after work, the need to grab groceries on the way home, a doctor’s appointment to get to, etcetera, etcetera.

During the COVID restrictions, public transit ridership took a huge hit. After the restrictions were lifted, ridership did not rebounded as expected. In fact, it seems to have stalled completely. It may be for the same reason office buildings are sitting empty: Employers and workers alike have figured out working remotely is just as good as being in the office. However, an additional factor may be at play: People have figured out the convenience of driving trumps taking public transit.

Recently, politicians in Sacramento have been floating the idea of imposing a mileage tax on all drivers. They are far enough along with their scheme, they have convinced a county to volunteer as a guinea pig. If you are worried San Mateo County is the guinea pig, you can relax, for now, and be happy you don’t live in San Diego County.

So what is the impetus behind the proposed stream of revenue? Hasan Ikhrata, executive director of the San Diego County Association of Governments, said: “At the end of the day, we need to take climate change seriously.” He goes on to defend the use of taxes and fees like the mileage tax to induce “behavioral changes.” His statement fits with how the state currently spends the revenue generated from taxes and fees on gasoline, as well as vehicle registration fees.

In California, only 25% of the respective funding is actually spent on direct road improvements, maintenance or new construction. The rest is spent on myriad other government programs, including mass transit fare subsidies to the tune of 86% per rider, cleaning up homeless encampments and, lest we forget, money diverted to the all but dead high-speed rail.

On Caltrans’ website regarding the tax proposal, caroadcharge.com, it makes an interesting statement: “The road charge is an innovative funding mechanism that allows drivers to support road maintenance based on how many miles they drive, instead of how many gallons of gas they use.” This might lead one to believe the taxes and fees on gasoline, as well as the vehicle registration fees, would be eliminated in lieu of the mileage tax. If you believe that will come about, I have a bridge to sell you that doesn’t even exist crossing the Bay.

Of course, one may be tempted to agree with the government’s argument that paying for road use per a mileage tax allows the state to capture revenue from those who drive electric vehicles. Which begs the question, does the state not capture revenue from EV drivers? Well, as a matter of fact, they do. Those who choose to go electric, like anyone else, pay an annual registration fee on their vehicle, (which is one reason it won’t be eliminated). They also pay sales tax upon purchase, and they pay taxes and fees on the electricity they purchase when charging. I wouldn’t cry for the state. EVs are not causing them to lose revenue.

To further support the fact the state is not suffering from a loss of gas tax revenue, simply look at the latest data from fiscal years 2020 through 2022. Comparing the two, one sees revenue went up from $6.6 billion to $7.1 billion, a historical high.

To go back to the idea of driving as a privilege, technically it is true. However, for most Californians, driving is as much a necessity as eating a meal. We don’t tax eating unless it’s at a restaurant. It begs the question, how much taxation should we endure for driving our vehicles?

A former member of the San Carlos City Council and mayor, Matt Grocott has been involved in political policy on the Peninsula for 17 years. He can be reached by email at mattgrocott@comcast.net.