California Gas Tax: What You Need to Know

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Have you noticed an increase in gas prices at the pump? If you are in California, chances are you have. This uptick in prices is due to an additional 12 cent tax on gasoline and an additional 20 cent tax on diesel in California. This bill, signed by Governor Jerry Brown, took effect on November 1st, 2017.

The estimated $5.2 billion in additional yearly revenue is slated to be used to improve the state’s transportation infrastructure. With roughly $130 billion in backlogged transportation repairs, the additional revenue should not only help pay for needed repairs, but also create jobs in the state, according to politicians.

The bill faced significant resistance from state Republicans and efforts to repeal the bill have already been started. While the repeal of the bill is unlikely, chances are state Republicans will use it to their advantage in the 2018 elections.

California already has some of the highest gas prices in the nation and it doesn’t look like this will change anytime soon.