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VEHICLE MILES TRAVELED: California Weighs Mileage-Based Tax

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California lawmakers are advancing a study on a Vehicle Miles Traveled (VMT) tax as the state searches for new ways to fund its transportation system amid declining gas‑tax revenue. Assembly Bill 1421 extends long‑running research into whether a mileage-based fee could eventually replace the gas tax, with findings due by January 2027. Supporters say the study is needed to address shrinking revenue, while critics fear it could pave the way for a future tax burden on drivers—especially rural commuters.


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