July 1: Californians Get a Gas Tax Increase

California drivers will see a 6 cent increase at the pump after the gas tax will increase beginning July 1.

California’s will see the tax go from 41.7 cents to 47.3 cents—a 5.6 cent increase per gallon of gas.   According to the latest AAA report, the national average of a gallon of gas in the United States is $2.69 while on Monday, AAA reported Californians are paying $3.75.

On a 15-gallon tank, it will cost drivers an extra 90 cents and anticipates costing drivers and extra $2.50 to $3.00 per month (or around $35 annually).

The gas tax increase was part of Senate Bill 1, which was signed by Governor Jerry Brown in May of 2017.

SB 1, the Road Repair and Accountability Act of 2017, co-authored by Senator Jim Beall (D-San Jose) and Assemblymember Jim Frazier Jr. (D-Discovery Bay), is backed by a broad coalition of supporters and invests $52.4 billion over the next decade to fix roads, freeways and bridges in communities across California and put more dollars toward transit and safety.

The following funds will be split equally between state and local investments over a ten-year horizon:

Fix Local Streets and Transportation Infrastructure (50 percent):

– $15 billion in “Fix-It-First” local road repairs, including fixing potholes
– $7.5 billion to improve local public transportation
– $2 billion to support local “self-help” communities that are making their own investments in transportation improvements
– $1 billion to improve infrastructure that promotes walking and bicycling–double the existing funding levels
– $825 million for the State Transportation Improvement Program local contribution
– $250 million in local transportation planning grants.

Fix State Highways and Transportation Infrastructure (50 percent):

– $15 billion in “Fix-it-First” highway repairs, including smoother pavement
– $4 billion in bridge and culvert repairs
– $3 billion to improve trade corridors
– $2.5 billion to reduce congestion on major commute corridors
– $1.4 billion in other transportation investments, including $275 million for highway and intercity-transit improvements.

Ensure Taxpayer Dollars Are Spent Properly with Strong Accountability Measures:

– Constitutional amendment, ACA 5 for voter approval on the June 2018 ballot, to prohibit spending the funds on anything but transportation
– Inspector General to ensure Caltrans and any entities receiving state transportation funds spend taxpayer dollars efficiently, effectively and in compliance with state and federal requirements
– Provision that empowers the California Transportation Commission to hold state and local government accountable for making the transportation improvements they commit to delivering
– Authorization for the California Transportation Commission to review and allocate Caltrans funding and staffing for highway maintenance to ensure those levels are reasonable and responsible
– Authorization for Caltrans to complete earlier mitigation of environmental impacts from construction, a policy that will reduce costs and delays while protecting natural resources.

To see where funds from SB 1 are going, click here.