Nov 8 2018 45756 1 Californias Gas Tax Increase Is Here To Stay

Dated: 11/08/2018

Views: 60

Supported by Brown and mainly Democratic lawmakers, the plan raised the excise tax on gasoline by 12 cents per gallon and the excise tax on diesel by 20 cents per gallon, and tripled the sales tax on diesel.

It also created a new “transportation improvement fee” for vehicle registration, ranging from $25 to $175 depending on its value, and a $100 “road improvement fee” for electric cars. All of those charges rise with inflation in the years ahead.


The new taxes and fees are expected to generate an average of more than $5 billion annually over the next decade. Most of that is slated for road rehabilitation and maintenance — half for state highways, half for city and county streets — with an ambitious goal of having at least 98 percent of highway pavement in good or fair condition by 2027. About a quarter of the money is designated for other purposes, such as upgrading bus and light-rail systems and reducing traffic on some of the most heavily-congested travel corridors

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