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

BrieAnna J. Frank, Palm Springs Desert Sun
·3 min read
1

The claim: California program would tax drivers 30 cents per mile

A May 30 Instagram post (direct link, archive link) claims residents in the country’s most populous state will soon be paying significant fees to drive.

“BREAKING NEWS: California is planning on taxing citizens $0.30 per mile they drive,” reads the screenshot of a social media post.

It received more than 4,000 likes in a week. Other versions of the claim spread widely on Instagram and Facebook.

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Our rating: False

The initiative in question is a voluntary pilot program, not a statewide policy. And the pilot, which charges drivers based on mileage instead of gas purchases, won't cost anyone close to 30 cents per mile.

Less gas usage threatens state transportation funds

As more drivers switch to hybrid and electric vehicles, California has lost gas tax revenue that helps support the state's transportation system.

A state-run pilot program will test taxing drivers based on mileage instead of fuel usage, but the cost in the social media posts is “not anywhere near what we’re talking about here,” said Lauren Prehoda, Road Charge Program Manager at the California Department of Transportation.

The six-month pilot that begins in August will involve around 800 volunteers randomly split into two groups. One will be charged a flat rate of 2.8 cents per mile, which Prehoda described as a “revenue-neutral rate” that brings in the same amount of money as the current gas tax. The other group will be taxed based on their vehicle’s fuel efficiency. The rate decreases as fuel efficiency increases.

That rate is calculated by dividing the state's per-gallon fuel tax, which will be 59.6 cents per gallon as of July, by the EPA's fuel economy rating for a particular vehicle.

Though the legislation that created the program doesn’t specify a rate cap, Prehoda said the social media posts are a stretch.

“I highly doubt it would ever get to a level that would be 30 cents per mile,” Prehoda said.

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A Toyota Prius, for example, is among the most fuel-efficient midsize vehicles, getting 57 miles per gallon, according to the EPA. That would equate to a 1.05-cent tax per mile.

The EPA rates the Bugatti Chiron Super Sport sportscar as among the least fuel-efficient vehicles at 9 miles per gallon, which equates to about 6.62 cents per mile, still far short of 30 cents.

Participants will receive a credit at the end of the six-month study for gas taxes they've paid at the pump. Electric vehicle drivers will receive partial credit on registration fees, according to the program website. Participants also are eligible for up to $400 in additional incentives.

After the pilot ends in early 2025, the department will create and publish a report on its findings, Prehoda said. At that point, lawmakers would have to pass legislation for the mileage-based tax model to take effect for all California drivers.

“There’s nothing automatic about this,” Prehoda said. “Nothing has been decided.”

USA TODAY reached out to the user who shared the post for comment but did not immediately receive a response.

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This article originally appeared on USA TODAY: California pilot program is taxing drivers per mile | Fact check