AdvertiseDonate
LatestNvidia CEO Affair Triggers Scrutiny of China's State Security Ministry
New Business Picks · 400 Corporate Pointe, Suite 300, Culver City, CA 90230
Politics · Los Angeles

Becerra Open to Mileage Tax, Hilton Opposes

The vehicle-miles-traveled fee has entered the California gubernatorial debate as EV adoption threatens traditional gas tax revenue.

By Rosa Wojcik ·

Illustration for: Becerra Open to Mileage Tax, Hilton Opposes
Illustration generated for this article, not a news photograph.

Democrat Xavier Becerra said he is willing to consider a vehicle-miles-traveled tax to fund California's road repairs. His position contrasts sharply with his Republican opponent, Steve Hilton, who calls the idea a solution in search of a problem. The exchange has intensified the campaign's focus on taxes and affordability just days before Election Day.

Becerra told Ashley Zavala of KCRA 3 that he does not want to tax people more than necessary, but he believes options must remain open. He stated that roads are not paid for by magic and that the state must find ways to fund them. He specifically noted his openness to a mileage-based fee, a concept also known as a mileage tax.

Hilton, the Republican candidate, strongly opposes the measure. He argued that 93 percent of cars and trucks on California roads run on gas or diesel. According to Hilton, this high percentage of combustion vehicles makes a mileage tax an incorrect response to current infrastructure funding needs. He suggested that the state is not facing an immediate crisis that requires this specific type of new levy.

The debate touches on a legislative proposal that has been under study for years. Democratic Assemblywoman Lori Wilson, who has endorsed Becerra, introduced a bill to study a mileage-based fee system. She described the current proposal as a continuation of a study bill enacted by the legislature in 2014. The goal is to address projected losses in gas tax revenue caused by the rise of electric vehicles.

Republican state lawmakers have cited cost figures from previously studied plans. They estimate drivers could face charges between 6 and 9 cents per mile. At that rate, the average driver would pay about $1,000 a year in new taxes. Hilton used these figures to argue that the tax adds to existing burdens, noting that California already has the highest gas tax and car registration fees in the country.

Kate Gordon, CEO of California Forward, said the state will eventually need new revenue sources for aging roadways. She pointed out that heavier vehicles cause more wear and tear than lighter ones. Gordon suggested that taxes on heavy-duty trucks could be part of the solution, as these vehicles create the most damage to the pavement. She described the need for creative approaches to infrastructure funding.

A spokesperson for Becerra's campaign clarified his stance in a statement. The representative said Becerra has not proposed a mileage tax yet. The statement emphasized that working families already pay their share of taxes. It added that under Becerra's leadership, billionaires would pay their fair share, a point Hilton frequently raises in his campaign messaging.

More Politics · Report a business · Got a Story?

Get New Business Picks in your inboxThe best of business and city life. Free, a few times a week, unsubscribe any time.

Get New Business Picks in your inboxThe best of business and city life. Free, a few times a week, unsubscribe any time.