California program testing per-mile tax rates on drivers, but not 30 cents | Fact check (2024)

FAQs

Is there a mileage tax in California? ›

Just like you pay your gas and electric bills based on how much of these utilities you use, a road charge - also called a mileage-based user fee - is a fair and sustainable way to fund road maintenance, preservation, and improvements for all Californians.

These charges can be either a flat fee (e.g., a fixed number of cents per mile, regardless of where or when the travel occurs) or a variable fee based on considerations such as time of travel, congestion levels on a facility, type of road, type and weight of the vehicle, vehicle emission levels, and ability to pay of ...

The California Road Charge Pilot Program is a mechanism where drivers fund road improvements based on miles driven rather than the amount of gasoline purchased. Revenues for highways and local roads currently come primarily from gasoline excise taxes and are insufficient.

EVs make up about 5 percent of all cars on the road and a quarter of new car sales — and aren't paying their full share of road taxes. California already charges EVs a fee of $118 per year, but it's only enough to make up about a fifth of the amount drivers would have paid at the pump.

If you use your own car for work purposes and are reimbursed by your employer for the related expenses, the mileage reimbursement generally isn't taxable income if it's paid under an accountable plan. However, if it's paid under a nonaccountable plan, the reimbursement is generally taxed.

California Labor Code section 2802 requires employers to reimburse their employees for mileage they incur in the course of their employment. Section 2804 says that employees cannot “waive” (i.e., forfeit) their right to receive reimbursement for miles driven for work.

You can prove mileage for taxes by keeping a mileage log book to track distances traveled for work purposes. This record can help you deduct expenses from your tax payments, especially if you are self-employed or own a small business.

The standard mileage rate for transportation or travel expenses is 67 cents per mile for all miles of business use (business standard mileage rate).

Writing off mileage by the standard IRS mileage method requires less documentation and hence is simpler. However, if you own a vehicle that has a high road tax, or uses a lot of fuel, writing off the gas and other expenses can give you a higher tax deduction and actually cover your business mileage costs.

This pilot will specifically test revenue collection by requiring pilot participants in the pilot be charged a flat per-mile fee or a customized fee based on the miles-per-gallon fuel economy of their vehicle. This is the first pilot the state has conducted that will require actual payment of the road charges.

What is CA guaranteed income Pilot Program? ›

The California Guaranteed Income (GI) Pilot Program provides grants to eligible entities that provide a guaranteed income to participants. The CDSS prioritized funding for pilot programs that serve California residents who age out of extended foster care at or after 21 years of age or who are pregnant individuals.

A funding system first approved in 1923

On average, Californians pay about $300 a year in state gas taxes that are charged at the pump when a driver buys gas. This money helps keep both local roads and state highways in good repair.

Home Charging Costs

Contact your utility to find out more. While electricity costs vary greatly, the average cost of electricity in California is about 16.58¢ per kilowatt hour (kWh). At this price point, charging a 40–kWh battery with a 150–mile range would cost about 4.42¢ per mile (or about $6.63 to fully charge).

At its most basic, a VMT tax involves charging a driver a fee for every mile they drive, and/or when they drive on a particular street, and/or in a particular area, and/or at a particular time of day – all three combined.

No. All hybrid and electric vehicles pay tolls on The Toll Roads.

The standard mileage rate for transportation or travel expenses is 67 cents per mile for all miles of business use (business standard mileage rate). See section 4 of Page 3 - 3 - Rev.

Things like fuel prices, costs of maintenance, oil changes, insurance, tires, and general depreciation all factor in. Since January 1st, 2024, the IRS standard mileage rate has been . 67 cents per mile. So if one of your employees drives for 10 miles, you would reimburse them $6.70.