California’s gasoline tax did go up on Saturday 1st of July, despite the state already having one of the highest tax rates on gas in the nation.
The price at the pump went up up by 4 cents per gallon — increasing the excise tax rate from around 54 cents per gallon to around 58 cents per gallon.
The average gas price in California is more than $1.25 higher than the national average. On Friday, the average price for a gallon of regular gas in California was $4.83, while the national average was $3.54, according to AAA.
In 2017, the California State Legislature passed the Road Repair and Accountability Act, or Senate Bill 1 (SB1). The law raised taxes related to transportation, with the goal of using the revenue to improve the state’s roads, traffic safety and public transit systems.
The state excise tax on fuel increases every year to adjust for inflation.
Prior to that law, the state excise tax on gas was last raised in 1994. The bill is “the largest transportation investment in California history,” according to the Metropolitan Transportation Commission.
A group of Republicans opposed the bill (SB1), which was primarily supported by Democrats and the people voted it into law.
California officials are considering changing the state’s gas tax system due to the rise in electric and hybrid vehicles over the past few years.
One proposed system would charge drivers based on how many miles they drive instead of how much fuel they buy, according to Caltrans.
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