Gas Tax Increase July 1st

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An increase of 2.25% of the state’s gas excise tax has occurred every year since 2011, it increased 8.25% in 2010. The increase 7/1/24 is to 69.8 cents/gallon (not to 59.6 cents).

Gas Tax Increase July 1st

 Sales Tax Rates for Fuels (ca.gov)

An additional .50 increase over two years is scheduled to occur, as a result of September 2023 legislation

While Nerdwallet
identifies the total tax on a gallon of gasoline will be “69.8 cents per gallon — the highest of all states….When other state taxes and fees are taken into account, the state tax on a gallon of fuel in California will rise from about 68 cents to about 70 cents.”

Other news outlets chose to highlight how the increase is on the excise-tax and therefore their headlines are focused on the increase 1.7 cent increase from 57.9 to 59.6, ten cents less than reality.

Proposition 6, on the California ballot in 2018 has been described as “Voter Approval for Future Gas and Vehicle Taxes and 2017 Tax Repeal Initiative”

Yes vote of 43.8% No vote of 56.82%. It would have

  • Repealed an already-in-place scheduled increase by way of ”Road Repair and Accountability Act of 2017 (RRAA)
  • Require over approval (via ballot initiatives) for California Legislators “to impose, increase, or extend fuel taxes

The State of California detailed it as

Repeals a 2017 transportation law's taxes and fees designated for road repairs and public transportation. Fiscal Impact: Reduced ongoing revenues of $5.1 billion from state fuel and vehicle taxes that mainly would have paid for highway and road maintenance and repairs, as well as transit programs.

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KQED
detailed how the increases occurred via SB1 titled “The Road Repair & Accountability Act of 2017”.a 10 year program to finance state and local road work.

  • Created the Road Maintenance and Rehabilitation Program
  • Increased gas taxes by .12/gallon and diesel .20/gallon.
    • This bill would deposit the revenues attributable to 50% of the $0.20 per gallon increase in the diesel fuel excise tax imposed by the bill into the Trade Corridor Enhancement Account, to be expended on corridor-based freight projects nominated by local agencies and the state.
  • Increased car registration by $25 - $175.
  • Increased the California Transportation Commission’s role in a number of existing programs, and created new programs for the Commission to oversee.
  • Created the Independent Office of Audits and Investigations within the Dept of Transportation
  • Article XIX of the California Constitution requires gasoline excise tax revenues from motor vehicles traveling upon public streets and highways to be deposited in the Highway Users Tax Account, for allocation to city, county, and state transportation purposes. Existing law generally provides for statutory allocation of gasoline excise tax revenues attributable to other modes of transportation, including aviation, boats, agricultural vehicles, and off-highway vehicles, to particular accounts and funds for expenditure on purposes associated with those other modes, except that a specified portion of these gasoline excise tax revenues is deposited in the General Fund. Expenditure of the gasoline excise tax revenues attributable to those other modes is not restricted by Article XIX of the California Constitution.
  • This bill, commencing November 1, 2017, would transfer the gasoline excise tax revenues attributable to boats and off-highway vehicles from the new $0.12 per gallon increase, and future inflation adjustments from that increase, to the State Parks and Recreation Fund, to be used for state parks, off-highway vehicle programs, or boating programs.
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