Video summary

CA to Impose a Mileage Tax! What It Will Cost You

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Summary

The video discusses California’s newly approved Assembly Bill 1421 (AB1421), which introduces a statewide mileage tax on drivers. This tax adds a per-mile fee on top of already high gas and car taxes in the state.

The mileage tax charges drivers between 6 to 9 cents per mile, translating to an additional $900 to $1,200 annually for the average Californian driving 15,000 miles per year. For a typical two-car family, this could mean paying around $4,200 per year solely in taxes related to driving (excluding gas, insurance, and vehicle costs). This mileage tax effectively raises the equivalent gas tax by 87 cents to $1.15 per gallon.

Finance-Specific Points

Tax and Cost Impact

  • Mileage tax rate: 6 to 9 cents per mile
  • Average driver mileage: 15,000 miles/year
  • Annual additional cost per driver: $900 - $1,200
  • Equivalent gas tax increase: $0.87 to $1.15 per gallon
  • Total annual cost for a two-car family: approximately $4,200 (excluding gas, insurance, and vehicle costs)
  • California already has the highest gas and car taxes in the U.S.

Legislative and Political Context

  • AB1421 was passed by California Democrats to implement a statewide mileage tax.
  • The mileage tax is an addition, not a replacement, to the existing gas tax.
  • Initially targeted at electric vehicles, but expected to expand to all vehicles.
  • Full imposition requires a two-thirds legislative vote.
  • Local governments, such as San Diego County, have considered or implemented similar mileage taxes (6-9 cents/mile).
  • Opposition efforts include raising public awareness, petitions, and political campaigns targeting legislators who supported the tax.

Campaign and Opposition Strategy

  • Reform California and affiliated groups are organizing opposition via petitions (see stopthemiletax.org).
  • Polling indicates 70% of Californians oppose the mileage tax, including many Democrats.
  • Efforts focus on flipping vulnerable Democratic legislators who voted for the tax.
  • The campaign is connected to the Save Prop 13 initiative, which could help block local mileage taxes.
  • An amendment to exempt gas-powered cars from the mileage tax was rejected.

Macroeconomic and Social Implications

  • The tax adds to the already high cost of living in California.
  • Seen as a burden especially on working-class families, who often drive longer distances.
  • Compared to New York City’s congestion pricing but framed more as a revenue grab than a traffic control measure.

Additional Notes

  • No specific stock tickers, financial instruments, or investment strategies were discussed.
  • The focus is on tax policy, its financial impact on consumers, and political activism opposing the measure.

Disclaimers

  • The video is presented by Carl Deayo, chairman of Reform California and a California state representative.
  • The content is advocacy-oriented and not financial advice.

Presenters / Sources

  • Carl Deayo — Chairman of Reform California and California State Representative
  • Unnamed opposition speaker who proposed an amendment against AB1421 in the California Assembly

Original video