CA Lawmakers Approve Bill to Raise $5 Billion Per Year for Roads

California will raise gas and diesel taxes – taking the gas tax to 30 cents per gallon in January – and vehicle fees to raise a projected $52.4 billion for construction over 10 years
California Road Construction

The California Legislature passed Senate Bill 1, raising gas taxes and vehicle fees in hopes of generating tens of billions of dollars to fix the state's roads.

The tax increases will take effect November 1 and new vehicle registration fees will begin Jan. 1, 2018. Fees on zero-emission vehicles will take effect July 1, 2020, according to the text of the bill.

To raise a projected $52.4 billion over 10 years, changes to taxes and fees include:

·       A 12-cent increase in the gasoline excise tax

·        A 20-cent increase in the diesel excise tax

·        A 5.75 percent increase in the diesel sales tax

·        A new vehicle fee, which will annually charge drivers between $25 and $175, depending on the value of the vehicle

·        A $100 annual fee on zero-emission vehicles

The vote brings California's gas excise tax to 30 cents per gallon.

(more details on new CA road-funding legislation . . . )