$324,000-per-home tax would drive up housing costs, raise rents by $1,350 a month, and stall construction statewide

Sacramento, CA (August 26, 2025) – The Coalition for Affordable, Reliable, and Equitable (CARE) Housing today announced a large coalition urging the Legislature to repeal a new Vehicle-MilesTraveled (VMT) housing tax quietly buried deep in the recent housing bill package (AB 130, Section 58). The coalition includes leaders such as the Jesse Miranda Center for Hispanic Leadership, The Two Hundred for Homeownership, Community Build Inc., Groundswell for Water and Housing Justice, housing advocates, business leaders, and elected officials.

The coalition warns the tax will drive up housing costs, destroy jobs, and worsen the state’s affordability crisis. In some cases, the tax could reach $324,000 per home or apartment – a crushing burden that translates into the equivalent of a $2.00 penalty for every extra mile driven over government-set driving limits.

“A new housing tax will increase housing costs making it even harder to afford to buy or rent a home. We urge the Legislature to correct course by repealing the VMT housing tax, which undermines the very housing reforms adopted by the Legislature,” said Robert Apadaca, co-founder of The Two Hundred for Homeownership.

Impact of the new VMT housing tax:

• Raises new home prices on top of existing mandates that already add $197,000 to the price of a new home.
• Increases monthly rents by $1,350 — a 48% jump over the state median.
• Disproportionately harms low-income and minority households of color.
• Stalls housing production and eliminates construction and trade jobs.

 

“The VMT housing tax is the wrong approach at the wrong time. Families in our neighborhoods already face impossible choices between rent, transportation, and childcare. Adding hundreds of thousands of dollars in new costs to homes and apartments will only push stability further out of reach. California should be breaking down barriers to housing, not building new ones, said Robert Sausedo, president and CEO of Community Build Inc.

CARE Housing coalition members who have voiced their opposition to the VMT housing tax include:

Affordable Housing:

• Community Build Inc.
• Groundswell for Water and Housing Justice
• Jesse Miranda Center for Hispanic Leadership
• LA FOCUS
• Los Angeles Metropolitan Churches (LAM)
• National Diversity Coalition
• The Two Hundred for Homeownership
• United Latinos Action

Social Justice & Faith-Based Organizations:

• Girls Club of Los Angeles
• ICON CDC
• Jesse Miranda Center for Hispanic Leadership
• LA FOCUS
• Los Angeles Community Church
• Los Angeles Metropolitan Churches (LAM)
• Minority Renewable Energy Project (MREP)
• National Diversity Coalition
• Toberman Neighborhood Center
• United Latinos Action (ULA)

Elected Officials:

• Bernadette Suarez, Councilmember, City of Lawndale
• Bill Ruh, Councilmember, City of Montclair
• Daniel Reid, Former Councilmember, City of Lawndale
• Jessica Martinez, Former Councilmember, City of Whittier
• John Solis, Former Mayor, City of La Puente
• Jose Diaz, Former Councilmember, City of Anaheim
• Sandra Suarez, former School Board Member, Centinela Valley Union High School District
• Steven Vargas, Councilmember, City of Brea

Homebuilding Advocates

• Building Industry Association of the Bay Area
• Building Industry Association of the Greater Valley
• Building Industry Association of Southern California
• Home Builders Association of Kern County
• Home Builders Association of the Central Coast
• NAIOP California
• North State Building Industry Association

Small Business and Industry:

• Building Industry Association of the Bay Area
• Building Industry Association of the Greater Valley
• Building Industry Association of San Diego
• Building Industry Association of Southern California
• Burbank Chamber of Commerce
• California Black Chamber of Commerce
• Coalition of Filipino American Chambers of Commerce
• California Building Industry Association
• California Business Properties Association
• California Business Roundtable
• California Chamber of Commerce
• California Farm Workers and Families
• California Fuels & Convenience Alliance
• Carlsbad Chamber of Commerce
• Carson Chamber of Commerce
• Coalition of Filipino American Chambers of Commerce
• Family Business Association of California
• Greater Coachella Valley Chamber of Commerce
• Harbor Association of Industry and Commerce (HAIC)
• Home Builders Association of Kern County
• Home Builders Association of the Central Coast
• Inland Empire Economic Partnership (IEEP)
• Inland Empire Latino Coalition
• Lake Elsinore Valley Chamber of Commerce
• Livermore Valley Chamber of Commerce
• Los Angeles County Business Federation
• Los Angeles Latino Chamber of Commerce
• Menifee Valley Chamber of Commerce
• Murrieta/Wildomar Chamber of Commerce
• NAIOP California
• National Federation of Independent Business (NFIB)
• North State Building Industry Association
• Oceanside Chamber of Commerce
• Orange County Business Council (OCBC)
• Rancho Cucamonga Chamber of Commerce
• San Diego Regional Chamber of Commerce
• San Juan Capistrano Chamber of Commerce
• Santa Clarita Valley Chamber of Commerce
• Southwest California Legislative Council
• Simi Valley Chamber of Commerce
• Temecula Valley Chamber of Commerce
• Yorba Linda Chamber of Commerce

Businesses:

• Amara Realty
• Boudreau Pipeline Corporation
• Cado Real Estate Group
• Cerna Healthcare, LLC
• CopyRight Printing Systems
• CRISP Catering
• Development Concepts
• Fidelity National Title Builder Services
• Gouvis Engineering Consulting Group, Inc.
• iStairs, Inc.
• Keusder homes
• Mendez Strategy Group
• Menifee Bicycles, Inc
• Moote Companies
• Pattivs Fine Jewelers
• Petra Geosciences, Inc.
• Polyglass U.S.A.
• Power Chord Utility
• Proactive Engineering
• Pulte Home Company LLC
• Relles Florist
• S.O.A.G BBQ LLC
• Semper Anticus Corporation
• Signature Realty Capital Corp.
• Six Star Framing
• Spaces Renewed
• Superior Management & Realty Services Inc.
• T. Martin Development
• Thomas Grable & Associates
• Topalian Properties
• Trammell Crow Residential
• True Air Mechanical
• Walsh Engineering & Surveying, Inc.
• Woodbridge Pacific Group

Taxpayer Advocacy Organizations

• Americans for Tax Reform
• California Taxpayer Protection Committee
• Central Valley Taxpayers Association
• Coalition of Sensible Taxpayers (CST)
• Contra Costa Taxpayers Association
• Gold Country Taxpayers Association
• Golden Years Policy Council
• Los Angeles County Taxpayers Association
• Orange County Taxpayers Association (OCTax)
• Placer County Taxpayers Association
• San Diego Tax Fighters
• Solano County Taxpayers Association
• Sutter Yuba Taxpayers Association
• Ventura County Taxpayers Association

The coalition is urging immediate legislative action to repeal the VMT housing tax and adopt policies that protect affordability while meeting environmental goals.