Gas tax hike being proposed in CA legislature

Gov. Jerry Brown wants to increase transportation funding an annual average of $4.2 billion over the next 10 years. So just how would we accomplish this? He would increase the gas excise tax by 11.7 cents per gallon and the diesel excise tax by 11 cents per gallon. His plan would also impose a new $38 vehicle registration fee.

Senate Bill 1, authored by Sen. Jim Beall, D-San Jose, would generate an estimated $6 billion annually for roads. It would increase the gas tax by 12 cents a gallon over three years, increase the diesel excise tax by 20 cents and increase vehicle registration fees by $38. Zero-emission vehicles would have to pay $100 toward road maintenance and repair.

“This is a first step toward making our roads safer, improving our quality of life and giving a much-needed boost to our economy,” said Beall in a press statement. “With much of our roads and bridge infrastructure past its expected lifespan, rehab and maintenance costs for both the state system and local streets and roads are skyrocketing.”

Not so fast says Jon Coupal of the Howard Jarvis Taxpayers Association. Coupal told the San Jose Mercury News, "The Democrats predictably would like to raise taxes. Not only do we disagree, but it is abundantly clear that practically all of this backlog can be funded using existing general fund resources.” But Beall doesn’t want the general fund touched for road repairs. “That’s a non-starter,” he said. “No way.”Coupal suggests taking nearly $9 billion in bonds from high-speed rail for road construction.“If voter approval is deemed necessary,” Coupal said, “that measure passes in a heartbeat.”

More the entire proposed bill SB1 here

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