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

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