On Thursday, the California State legislator passed a $52 billion transportation plan that will raise the gas tax and increase fees to fund road projects.
The state Assembly voted 54-26 while the senate voted 27-11 which provided the two-third’s vote for a tax increase.
Under the legislation, the Road Repair and Accountability Act of 2017, SB 1 (Beall), invests $52.4 billion over the next decade by doing the following:
- $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.
Republican assemblyman Jay Obernolte took to Twitter stating:
Senate passes SB 1. Apparently Dems are ok w/ increasing gas taxes by 70% on Californians who are already struggling to make ends meet.
It’s a 19.5 cent/gallon gas tax increase, a 20 cent/gallon diesel excise tax increase, and a 4% diesel sales tax increase.
Republican Assemblyman James Gallagher also took to twitter saying “If roads were a priority for the majority party, why didn’t they use any of the $36B in new revenue over the past 6 years to
Republican Assemblywomen Melissa Melendez also noted via twitter that, “Senate & Assembly will pass SB1 raising fuel tax/vehicle tax. In xchange 4 their vote they get $$ for pet projects for their district mm”
Locally, Senator Steve Glazer and Catharine Baker voted against the bill while Assemblyman Jim Frazier voted yes.
Meanwhile, Jim Frazier’s AC-5 passed with support. Under the Bill, it protects revenues derived from vehicle fees to be used only for transportation purposes.
Here is a statement by the California Senate President Pro Tempore Kevin de Leon:
SACRAMENTO – California Senate President pro Tempore Kevin de León (D-Los Angeles) issued the following statement in response to the legislature’s passage of Senate Bill 1 to address California’s transportation infrastructure:
“Today, after decades of inaction, the legislature approved a fiscally responsible plan to address our decrepit transportation infrastructure. This bipartisan compromise includes strict accountability measures and closes our massive transportation funding shortfalls – without burdening future generations with debt. These investments will create good-paying jobs, improve traffic safety and expand public transit access in communities across the state.
“Once again, California stands in stark contrast with Washington, D.C. Senate Bill 1 should serve as a model of responsible governance for Congress and the Trump administration as they consider new infrastructure spending. Americans cannot afford a trillion dollar tax boondoggle.
“I’m extremely proud and grateful for the work of our Transportation Committee Chairman, Senator Jim Beall. This bill is the culmination of two years of difficult negotiations and dozens of public hearings in every corner of our state, and it would not have been possible without his leadership and dedication.
“I want to thank Speaker Rendon for his invaluable partnership; Assembly Transportation Committee Chairman, Jim Frazier, for his expertise and his tireless efforts to craft this bill; all of the members in both chambers who took decisive action to solve this pressing challenge; and Governor Brown, whose leadership was critical to breaking the multi-decade gridlock.”