California Gas Tax Increase: Californians are getting ready for an even more expensive summer at the gas station.
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The recent rise in the state’s gas tax will make the already high cost of gas even higher, just as the busy holiday travel season starts.
Gasoline is the most expensive in California
The state tax on gasoline in California went up by 1.7 cents per gallon on July 1, going from 57.9 cents to 59.6 cents.
This change, which is part of Senate Bill 1, is a yearly correction to the inflation rate.
Jerry Brown signed SB 1, also known as the Road Repair and Accountability Act, into law in 2017.
California’s political leadership and the petroleum industry are at odds over this tax increase.
California’s state excise tax on gasoline contributes significantly to the nation’s highest fuel prices.
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The national average price for a gallon of gas was $3.50, but in Orange County, it was $4.69 last Friday, which is $1.19 more than the national average.
The average price across the whole state was $4.79 per gallon. The excise tax in California pays for important building projects.
🚨BREAKING: California will raise gas tax by 50 cents a gallon.
Over the next two years, as determined by the California Air Resources Board, gas prices will rise by 47 to 52 cents a gallon. This is all part of their environmental agenda, yet the media is dead silent on this.… pic.twitter.com/F7f2ZIcTzI
— Max Bonilla (@outragedteen_) July 4, 2024
The SB 1 gas tax is meant to bring in $52.4 billion over ten years, with more than $3.2 billion going to the Road Maintenance and Rehabilitation Program every year.
This includes big investments in things like bridges, culverts, projects for neighborhood groups, and bike and walking paths.
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People Not Satisfied With California Gas Tax Increase
As of 2020, only 67% of the state’s pavement was in acceptable condition, making the state’s roads among the worst in the country.
Various groups have criticized the most recent tax hike.
In particular, Republican leaders have blamed Gov. Gavin Newsom for exacerbating the state’s high living costs.
A law enacted long before Newsom took office mandated this latest increase to account for inflation.
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People who drive in California pay 18.4 cents per gallon in federal revenue taxes on top of the state taxes.
All of these taxes add to the high price of gas in the state. Californians pay about $300 a year in state gas taxes, which are responsible for 80% of the money used to fix roads and highways.
California’s gas tax hike of only 1.7 cents is a small amount, but drivers are already paying the highest gas prices in the country, so every penny counts.
When people fill up their gas tanks, these taxes will start to show up because the state is still working to fix its infrastructure problems.
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