Vehicle miles traveled: local tax and state fund prohibition.

This bill would prohibit a state agency from expending funds for the study, planning, testing, design, implementation, administration, or evaluation of a tax, fee, assessment, or charge based on vehicle miles traveled (vehicle miles purposes). The bill would require the reversion of funds appropriated from the General Fund to another fund for vehicle miles purposes and would require the deobligation of encumbered but unexpended funds for those purposes. The bill would require the Department of Finance to, within 60 days of January 1, 2027, identify all relevant appropriations and ensure their reversion or transfer. The bill would additionally prohibit any future Budget Act from appropriating funds for vehicle miles purposes unless expressly authorized by statute, as described.

(2) Existing law authorizes the legislative body of a city or county to impose various taxes, including occupancy taxes and sales and use taxes. Existing law also prohibits a city and county form imposing certain taxes, such as a tax upon income.

This bill would prohibit a city, county, or any political subdivision thereof from imposing a tax, fee, assessment, or charge, that is calculated, in whole or in part, based on the number of miles traveled by a motor vehicle. The bill would not prohibit the collection of tolls for the use of specific facilities, as provided. The bill would provide that any existing program, pilot program, regulation, or administrative action inconsistent with this prohibition is void and unenforceable.

The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.