The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated, and no Warrants shall issue, but upon probable cause, supported by Oath or affirmation, and particularly describing the place to be searched, and the persons or things to be seized. -US Constitution, Amendment IV
What is it about the Constitution that these people don't understand? Regardless of the "incorporation" doctrine (which was made up by the Supreme Court), the 4th Amendment refers to a Right of the People. That is, no authority in the US is allowed to take it away (see also: Amendments 9 & 10).
In California, specifically around the San Francisco Bay area, law makers want to track your car via GPS to see how many miles you drive, and tax you accordingly. Now, I understand why, really. Electric, or even just hybrid, cars really do use less gasoline (even if the savings doesn't make up the price difference for the car) and gasoline taxes are a major part of the transportation budget. I get that. I understand its a problem that needs to be addressed. But you do not address it by violating the constitution, and my right to be secure in my person, home, papers, and effects supercedes the government's right to tax me based on how much I drive.
The Government doesn't get to know where I go and what I do. Not without a warrant issued only "upon probable cause, supported by Oath or affirmation, and particularly describing the place to be searched, and the persons or things to be seized." That means they don't get to read my GPS to see how far I've traveled.
And that avoids the bad acting that is sure to go on: things like taxing people for miles driven out of state, using these records (because they're already state records) as evidence in criminal trials, and so forth. I don't even have to go there because the idea itself is clearly ludicrous.
There are answers to the electric / hybrid-car problem. Personally, I'd love to see the gas tax done away with entirely, and have that revenue generated some other way. Perhaps as a calculated amount added to your yearly registration fee or something (not sure how that would work out, though). The specific answer does not matter, however: this is clearly government over-reach and should be vociferously opposed.