What a California Mileage Tax Would Mean for Employers
Quick Hits California’s transition to electric vehicles is causing a decline in gas tax revenue, prompting the state to consider a mileage tax to fund transportation infrastructure. The proposed mileage tax would likely trigger existing state labor laws, requiring employers to reimburse employees for the tax as a necessary business expense. Employers may face significant financial impacts from increased reimbursements, potentially leading to higher prices for customers, reduced employee travel,…

