California’s New Mileage Tax: A “Replacement” or Just Another Bait-and-Switch?
When California passed Senate Bill 1 (SB 1) back in 2017, the sales pitch to the public was simple and urgent: our roads are crumbling, our bridges are unsafe, and we need a dedicated fund to fix the “pothole from hell.” We were told that this money was a “locked box” for road safety and infrastructure.
California’s New Mileage Tax
Fast forward to today, and that “locked box” has been picked.
California’s New Mileage Tax
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The History of the Bait-and-Switch
For many newcomers to the Golden State, the current high gas prices seem like a force of nature. But for those who have been here, we remember the guarantees. The gas tax was sold as a solution for motorists. Yet, within a few short years, billions of dollars in transportation-related funds have been diverted into the “Train to Nowhere”—the California High-Speed Rail.
While your local commute is still riddled with cracks and congestion, your tax dollars are being poured into a rail project in the Central Valley that is billions over budget and decades behind schedule. If the state can find a “loophole” to move road money to a rail project that most people will never ride, why should we believe the next promise?
AB 1421: The Next Scheme?
The latest proposal, AB 1421, is being introduced as a “study” for a mileage-based tax. The state argues that as more people move to electric vehicles, gas tax revenue is dropping, and they need a “replacement” to keep fixing the roads.
But here is the “red flag” that everyone needs to see: In January 2026, an amendment was introduced that would have guaranteed that drivers wouldn’t be double-taxed. It was a simple promise: If you pay the mileage tax, you don’t pay the gas tax.The majority voted it down.
By refusing to ban double-taxation, the legislature has left the door wide open to charge you for every mile you drive while also keeping the gas tax that already hits your wallet every time you fill up.
The “Apple Pie” Title: Deceptive Branding
You may remember past discussions about a “Truth in Title” law, which was supposed to require the title of a ballot measure or bill to accurately reflect its actual content. In California, these reforms have effectively been a dead letter.
Instead, the government gives these bills comforting, patriotic, or emotional names—like voting for “Grandma’s Apple Pie.” But too often, when you read the fine print, the bill has an outcome completely different from what the public was sold. SB 1 was titled “The Road Repair and Accountability Act,” but it lacked the accountability to prevent its funds from being shifted to the rail project. They give you the “Apple Pie” name, but you get a very different result.
The July 1st “Ratchet”
Don’t forget the “hidden” tax increase that happens every year. Under current law, the California gas tax automatically “ratchets” up every July 1st based on inflation. It is designed to stay the same or go up—it never goes down. This isn’t a bug in the system; it’s a feature.
Why We Should Be Skeptical
The government has a “track” record—pun intended.
They tell you a tax is for “safety and roads.”
They give the bill a comforting, misleading “Apple Pie” name.
They find a loophole to spend the money on “pet projects” like the high-speed rail.
They refuse to sign a pledge against double-taxing you on the new mileage system.
The “real story” isn’t about fixing roads. It’s about creating a new, permanent revenue stream that tracks your every move and likely sits right on top of the taxes you’re already paying. Before we buy into another “fair” tax system, we should ask: What happened to the billions we already gave you?
California’s New Mileage Tax
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