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Bill

AB 1783

Vehicle miles traveled: local tax and state fund prohibition.

2025-2026 Regular Session Introduced by Carl DeMaio

Bill authorizes California local governments to impose vehicle miles traveled taxes, creating new distance-based road-use revenue while raising privacy and equity implementation concerns.

From committee chair, with author's amendments: Amend, and re-refer to Com. on L. GOV. Read second time and amended.
#vehiclemilestraveled #localtaxandstatefundprohibition
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WeVote Research Nonpartisan
Bill Summary · AB 1783

Legislative bill overview

AB 1783 would authorize California local governments to impose an additional tax based on vehicle miles traveled (VMT) by residents and drivers within their jurisdictions. This represents a new local revenue mechanism separate from existing gas taxes and vehicle registration fees, allowing counties or municipalities to implement distance-based taxation on road usage.

Why is this important

As California seeks transportation funding for infrastructure maintenance and expansion while gas tax revenues decline due to electric vehicle adoption, VMT taxes have been proposed as a replacement revenue source. This bill would shift tax authority to local governments, potentially creating a patchwork of different rates across California and raising questions about implementation, privacy, and equity in how transportation is funded.

Potential points of contention

  • Privacy and tracking concerns: Implementing VMT taxes requires monitoring where and how often vehicles travel, raising data collection and privacy questions that could face significant public resistance
  • Regressive impact on low-income and rural residents: Flat-rate distance taxes may disproportionately burden low-income drivers and rural communities where longer commutes are necessary, regardless of income
  • Implementation complexity and cost: Local governments would need infrastructure to track and collect VMT data, creating administrative burdens and potentially high implementation costs that could offset revenue gains

Compiled from official sources — confirm details with the bill’s official record.

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