California Assembly Bill AB1783

California 2025-2026 Regular Session

• Introduced: 2/9/26
• Refer: 3/16/26
• Report Pass: 3/19/26
• Refer: 3/23/26

Caption

An act to add Chapter 5.5 (commencing with Section 16643) to Part 2 of Division 4 of Title 2 of the Government Code, and to add Chapter 1.2 (commencing with Section 7283.61) to Part 1.7 of Division 2 of the Revenue and Taxation Code, relating to taxation. vehicle miles.

Summary

AB 1783 would prohibit California state agencies from spending state funds on the study, planning, testing, design, implementation, administration, or evaluation of any tax or fee based on vehicle miles traveled (VMT). It would also require certain unspent or unencumbered General Fund dollars already set aside for VMT-related purposes to revert or be deobligated, and it would bar future Budget Acts from funding such work unless later expressly authorized by statute. The bill also would bar cities, counties, and other local governments from imposing, administering, collecting, or enforcing any mileage-based tax or charge. The measure defines such taxes broadly to include charges calculated in whole or in part by miles driven, including those using odometer, telematics, or GPS data, while expressly preserving tolls for specific facilities that are not based on total miles traveled beyond the tolled facility. It further declares this local prohibition to be a matter of statewide concern, making it applicable to charter cities as well.

Impact

If enacted, AB 1783 would add new prohibitions to the Government Code and Revenue and Taxation Code limiting both state and local government involvement in vehicle miles traveled taxation. It would constrain state budgeting and agency activity related to VMT pricing concepts, require the Department of Finance to identify and unwind certain appropriations by early 2027, and invalidate any inconsistent local programs, pilot projects, regulations, or administrative actions. The bill would also preempt local authority to adopt mileage-based taxes, including those intended to replace or supplement fuel taxes or registration fees, while leaving tolling authority intact.

Sentiment

The available voting history suggests the bill faced significant opposition in committee. It was set for first hearing and failed passage, and a subsequent committee vote on a do-pass motion resulted in 2 yeas and 6 nays. That pattern indicates limited support among the committee members who voted, with the measure not advancing at that stage. No committee transcript was provided, so the record reflects the vote outcome more than detailed debate.

Contention

The central point of contention is whether California should prohibit vehicle miles traveled taxes at both the state and local levels. Supporters of the bill appear to be concerned about government movement toward mileage-based road pricing, surveillance implications from GPS or telematics-based tracking, and the potential replacement of fuel taxes with VMT charges. Opponents likely object to the bill’s broad preemption of local experimentation and its restriction on state funding for studying or developing transportation finance alternatives, especially as VMT taxes are often discussed as a long-term replacement for declining fuel tax revenue. The bill’s application to charter cities and its voiding of existing inconsistent programs are also likely to be contentious.