Historically, poor tax policy conceived in the states rarely stays there, and the Golden State’s latest tax proposal threatens to spread nationwide if enacted. The proposed “California Mileage Tax” would track drivers’ mileage and charge them $0.06 per mile driven, effectively amounting to an estimated $0.80-per-gallon increase to the state’s pre-existing gas tax.  

In a state where drivers already pay upwards of $1,200 annually in additional gas and sales taxes compared with motorists elsewhere, this proposal would further strain household budgets.  

It would also require expansive data collection to monitor driving behavior, raising serious concerns about: 

• Government overreach into individuals’ daily lives 

• Erosion of taxpayer privacy 

• Further deterioration of public trust in government 

This proposal will also place significant new strains on tax administration and enforcement –– costs that ultimately fall on taxpayers. Implementation would require: 

• Tracking and auditing driver mileage data  

• Significant new resources from both the IRS and state tax authorities, and these departments are already being stretched thin.  

This is likely to result in more errors, disputes, and delays, further undermining confidence in the tax system. 

AIA strongly opposes this proposal and urges lawmakers and California residents to adamantly reject it. Beyond its direct impact in California, the mileage tax sets a dangerous precedent for privacy intrusions, reshaping how Americans travel, commute, and live their daily lives if adopted more broadly. 

Read the petition here. 

If you, or someone you know, has experienced a specific IRS abuse and wish to flag the instance for potential inclusion in future Abuses of the Week, contact us with the details at: info@irsaccountability.org.