Gas tax hike proposed to pay for billions in California road repairs
California drivers could soon be paying more at the pump.
Gov. Jerry Brown proposed a bill to get billions of dollars to repair roads, and it will be coming out of the pockets of people behind the wheel.
If the proposed measure goes through, this will be the first time in 23 years there has been an increase to the state gas tax.
As temperatures rise so do gas prices. Pain at the pump already has some people hurting.
“To fill it up, it’s about $65,” Darlene Coppel said while filling up her Chevy Silverado at a gas station in Thousand Palms.
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According to AAA, drivers on average are paying 56 cents a gallon more than this time last year.
“The problem is my car takes 91 octane gas and it is bad enough as it is. We are coming from LA and the peak price there is like $3.25, sometimes you hit $3.30,” said Simon Tang, who was traveling to the Coachella Valley to report on the ANA Inspiration.
Governor Brown proposed a new transportation repair measure on Wednesday. It’s a series of taxes which could add $5 billion a year to fix roads and highways.
“This is like fixing the roof on your house. If you don’t fix the leak, your furniture will be ruined, your rug will be destroyed, the wood will rot. That’s what it’s all about. So step up and take care of business. That’s what this bill is all about,” Brown said.
Here’s how the tax is proposed:
$7.3 billion by increasing diesel excise tax 20 cents $3.5 billion by increasing diesel sales tax to 5.75 percent $24.4 billion by increasing gasoline excise tax 12 cents $16.3 billion from an annual transportation improvement fee based on a vehicle’s value $200 million from an annual $100 Zero Emission Vehicle fee commencing in 2020. $706 million in General Fund loan repayments. Half of the money would be geared to smaller roads and the other half would go to fixing highways.
“California suffers a $130-billion backlog of infrastructure needs. For decades our transportation needs have been increasing but ‘fix it’ funds have been dwindling. A few years ago, a bridge collapsed in our district drastically disrupting commerce,” said Assemblymember Eduardo Garcia (D-Coachella). “These investments would open avenues for job creation and economic development in both the Coachella and Imperial Valleys.”
According to Brown, the $5 billion-a-year program will cost most drivers less than $10 a month and comes with strict new accountability provisions to ensure funds can only be spent on transportation.
The State Senate and Assembly are expected to vote on the bill next Thursday.