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You’ll want to fill up your tank by November 1st to avoid the new tax hike.
In an effort to increase funding for transportation projects, California is going to be adding a new statewide tax on gasoline and diesel fuel that will take effect on Wednesday.
The excise tax is going to increase from 12 cents per gallon to 41.7 cents. For diesel fuel, the excise tax will jump by 20 cents per gallon to 36 cents, and the sales tax will rise to 13% from 9%. The San Francisco Chronicle reports that the tax will work out to approximately 12 cents per gallon for diesel fuel.
Signed into law by Governor Jerry Brown, the hike in gas tax will legally null the reduction in price associated with the transition to winter fuel. November 1st is usually when gas stations switch from summer to winter gas.
Michael Blasky, a spokesman for AAA Northern California, predicts that we will be able to see a “3- to 5-cent increase next week” in gasoline prices. “After that, it’s hard to say” because gasoline prices are always fluctuating based on the price of oil, competition, and other factors.
Thankfully, a spokesman for the Automobile Club of SoCal told the San Diego Union-Tribune to not expect an “overnight switch” in prices. According to AAA, the current average price for regular gasoline in California is $3.03 a gallon.
The 12-cent rise will mark the first true hit of SB1, and the revenue will be earmarked for local and highway road and infrastructure improvements. We should be able to see the effects by July 2019.
Vehicle registration fees are also expected to increase between $25 to $175 per year, depending on the car. The tax will also establish a $100 annual registration fee for zero-emission vehicles, starting in July 2020.