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Senator Tony Strickland (R-Huntington Beach) joined a coalition in sounding the alarm on Assembly Bill 130, a budget bill that Sacramento Democrats passed in June and Governor Newsom signed into law.
AB 130 removed certain requirements of the California Environmental Quality Act (CEQA), but a provision was quietly added into the budget bill that could create unintended consequences for developers. The provision, Section 58 in AB 130, would allow local agencies to impose Vehicle Miles Traveled (VMT) fees that operate like hidden taxes on new housing across the state. The de facto taxes could potentially add $16,000 per unit and would likely be passed on to homebuyers and renters.
Senator Strickland released the following statement:
“So much for Sacramento Democrats calling this the year of affordability as they snuck a Vehicle Miles Traveled (VMT) mandate into a budget bill, creating new hurdles for housing development by forcing developers to pay costly fees if projects are deemed to increase drive time. Ultimately, this provision will hike up construction costs and make housing even more expensive.
“At a time when California faces a severe housing shortage, this provision is counterproductive and will only worsen our housing and affordability crises.
“Housing is not a one-size-fits-all, and yet this is another attack on the way of life for families who choose to live in rural communities or away from high-density housing.”