Starting July 1, California’s gas tax increased by 8%, resulting in an additional 4 cents per gallon or 56 cents per 14-gallon fill-up. The total gas tax on a gallon of petrol now stands at 57.9 cents.
This increase is part of Senate Bill 1 (SB 1), a 2017 state law that raises California’s gasoline tax annually to generate over $52 billion for transportation improvements and maintenance over a decade. In 2018, voters rejected a ballot measure seeking to repeal SB 1.
SB 1 initially raised the gasoline tax by 12 cents per gallon and the diesel excise tax by 20 cents per gallon on November 1, 2017. Unlike the federal government, California and 21 other states, along with the District of Columbia, include an inflation adjustment in their gas taxes.
Republicans recently requested the suspension of the new gas tax increase, citing the state’s projected $31.5 billion budget shortfall and the financial strain faced by Californians.
Assemblywoman Laurie Davies, a Republican, proposed a bill amendment to halt the gas tax increase, highlighting its impact on residents’ affordability and referring to a poll indicating that many Californians are contemplating leaving the state due to high costs. However, their request was unsuccessful, as Governor Gavin Newsom had also attempted to suspend the gas tax increase last year.
It is worth noting that the gas tax increase aims to address transportation funding needs and is an ongoing source of debate in California, where concerns about affordability and out-migration persist.
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