SACRAMENTO – Senate Bill 1 is the largest gas tax increase in the state's history, and it will automatically increase each year with no sunset date. Capitol Democrats claim the gas tax will increase by “only” 12 cents a gallon, but because of a change in the way the gas tax is being calculated, the actual increase likely will be 19.5 cents a gallon. As Jon Coupal, president of the Howard Jarvis Taxpayers Association, writes in his article, “But wait! There’s more!”
For the last three weeks this column has focused on both the policies and politics of the $5.2 billion annual transportation tax increase. In the unlikely event that some have forgotten — or were on another planet — the taxes include a substantial hike in the car tax as well as a 12 cent increase in the gas tax.
But here’s the kicker: The tax hike just jammed through the Legislature in less than one week by Senate Bill 1 contains a provision that, beginning in July of 2019, adjusts the base excise tax to what it was in July 2010 when the gas tax swap started. Currently, the excise tax on gas is 27.8 cents a gallon. But in July of 2010 it was 35.3 cents a gallon. So as it stands right now, that’s seven cents per gallon increase, on top of the new 12 cents per gallon tax.
But wait! There’s more!
Please click here to read the entire article published in The Orange County Register.