Fresno’s proposed vehicle miles traveled (VMT) tax plan may have just changed with a last-minute exemption for grocery stores. The change, which applies to stores under 50,000 square-feet, could ease the burden on residents in food deserts who rely on shopping centers for basic necessities.
The VMT tax was designed to encourage development by charging builders fees based on how far new homes and businesses are from job centers, schools, and other amenities. However, critics argue that the plan may actually discourage growth by pricing out potential retailers.
Residents of southwest Fresno have been calling for a grocery store or big-box retailer to open in their area, but the high cost of development fees is a major obstacle. The exemption for grocery stores could help alleviate this issue, but it’s unclear how it will affect other types of retail development.
The city’s plan assesses new projects based on how many miles people would need to drive from there to home, work, or school. This scoring system aims to encourage development in areas that are closer to amenities, but some experts warn that the tax could create more problems than it solves.
Source: https://gvwire.com/2025/10/29/which-fresno-businesses-will-be-taxed-more