As California drivers gradually transition from gas to electric cars and trucks, there will be fewer people fueling up, and that means the state will lose $6 billion in revenue over the next 10 years, according to the Legislative Analyst Office.
"The current excise tax is about 58 cents a gallon," said San Jose State University tax professor Caroline Chen.
Chen says tax money from all those gallons pumped goes to help keep California’s roads clean and safe, and with that much money being lost at the gas pump, the state needs to make it up elsewhere.
"No matter how you slice it, California residents are going to have to pay a certain amount of tax in order to keep our roads in a certain condition. So, we can actually drive on them," Chen said.
As California decides how to raise money over the next 10 years to offset gas tax losses, it’s also dealing with a projected $68 billion deficit next year.
Scott Budman has more in the video above.
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