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California: Efforts to repeal new gas taxes overlap

This spring, we addressed California’s infrastructure plan, which was incorporated into the state’s May budget revision and the new budget, and which provided $54 billion in new expenditures for transportation funding over the next decade. The new revenues were to be used for repairs for roads, state highways and bridges, and to invest in trade and commute corridors, passenger rail and public transit modernization and improvements, among other things.

Included in the legislation were these tax increases:

  • Excise tax increase on gasoline by $0.12 per gallon, starting Nov. 1, 2017
  • Excise tax increase on diesel fuel by $0.20 per gallon, starting Nov. 1, 2017
  • Sales tax increase on diesel fuels by an additional 4 percent increment, starting Nov. 1, 2017

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