Fuel-Tax Increases

The California state legislators passed a $52.4 billion, 10-year transportation bill to repair the state’s decaying roads and bridges.  The revenue will come via a hefty increase in gas and diesel taxes.  The plan calls for a 20 cents-per-gallon tax increase on diesel fuel, bringing it up to 36 cents.  Gas tax would increase to 39.8 cents per gallon from 27.8 cents today.  The taxes will be implemented in a 3-year process which calls for a 6 cent increase the first year followed by a 3 cent increase each of the next two years.  The increases are effective November 1, 2017.