Knowing full well that the fuel tax increase was passed and inevitable, the actual date it took effect seemingly snuck up on me as time flew by. As I pulled up to the pump yesterday morning to fill up, I was reminded first-hand of the exact gravity of the new California fuel taxes that took effect on November 1st. Since a picture is worth 1,000 words, you can see by this one below just how much difference the new gas tax made in just a week’s time!
The new November taxes will have several impacts on the price of fuel at the pump here in California now. The previous base excise tax, which was previously set at $0.16 per gallon is now increased to $0.36 per gallon. This amount will also adjust for inflation on July 1, 2020. In California there is also a sales tax on top of that which was 1.75%. It has now be raised to 5.75% with the new tax increase in full effect.
With these new increases estimated to generate an estimated $1.08-billion in revenue for the state, it is always a hope of mine that it will see its way into helping to fix the state’s deteriorating infrastructure. Although it has been stated that these funds are going to help pay for road and bridge improvements, the money has found ways to go into other state interests in the past. In June of 2018, voters will be able to vote in a control measure that will deter the pilfering of this account for purposes other than what it was designed to help fix. This new, less-palatable pump price will just have to be planned for like any other and prices adjusted to reflect another increased cost of doing business here in the state of California!