Tax by the Mile

Feb 16, 2005

With the growing popularity of fuel efficient cars like the hybrid, some states are beginning to worry that they won’t collect enough tax money through current gas taxes. To help compensate for this California is considering a “tax by the mile” that would tax you based on how much you drive. It has not been stated if the tax would be more or less than what Californians pay now.

The obvious drawback to this plan is it may discourage people from buying fuel efficient cars like the hybrid.