California’s gasoline tax is scheduled to increase again in July, despite the state already having one of the highest tax rates on gas in the country.
Starting July 1, prices at the pump will go up by 4 cents per gallon – increasing the tax rate from about 54 cents per gallon to about 58 cents per gallon.
The average gas price in California is more than $1.25 higher than the national average. On Friday, the average price for a gallon of regular gas in California was $4.83, while the national average was $3.54, according to AAA.
In 201[ads1]7, the California State Legislature passed the Road Repair and Accountability Act, or Senate Bill 1. The law raised taxes related to transportation, with the goal of using the revenue to improve the state’s roads, traffic safety, and public transportation systems.
The government tax on fuel increases every year to adjust for inflation.
Before that law, the state tax on gas was last raised in 1994. The bill is “the largest transportation investment in California history,” according to the Metropolitan Transportation Commission.
A group of Republicans opposed the bill, which was primarily supported by Democrats.
California’s Republican congressional delegation sent a letter to Governor Gavin Newsom on Friday asking him to suspend the gas tax increase.
“This tax increase places an unnecessary burden on Californians who are already struggling with the high cost of living in our state,” the letter said.
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In San Diego, the price of a gallon of regular gas averaged $4.87 on Friday. The highest recorded average price was $6.44 on October 5, 2022, according to AAA.
California officials are considering changing the state’s gas tax system because of the rise in electric and hybrid cars in recent years.
A proposed system would charge drivers based on how many miles they drive instead of how much fuel they buy, according to Caltrans.