California Gas Tax Increases 12 Cents per Gallon Effective Nov. 1

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According to the law, the California gas tax and diesel tax increases and new vehicle fees will help generate around $5.2 billion annually. The State government plans to use the revenue to fund repairs for roads and bridges and improve mass transit. It will also use the money to expand bike paths and reduce traffic congestion.

SB1 Projects --California Gas tax and Diesel Tax Increase

Currently, California has a backlog in repair and replacement projects for its transportation system worth $130 billion.

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According to State Senate President Pro Tempore Kevin de León, “These investments will create good-paying jobs, improve traffic safety and expand public transit access in communities across the state — without burdening our future generations with debt.”

California Gas Tax Repeal Ballot Initiative

On the other hand, Republican Assemblyman Travis Allen argued, “This massive new tax will not build any new roads. It will do nothing to fix California’s worst in the nation traffic. In fact, Brown’s new gas tax legislation actually has specific language that will reduce lane capacity and increase traffic.”