CALIFORNIA FUEL TAXES JUMP

The above two photos were taken one day apart at a nearby gas station.  The photo on the left depicts fuel prices yesterday, October 31st, and the one on the right is today’s, November 1st, fuel prices.  Why the steep increase? Because California’s legislature and governor approved SB1, The Road Repair & Accountability Act of 2017 increasing the state’s sales and excise taxes on fuel.

In a nutshell, the excise tax on gasoline rose from $0.18 to $0.30 while the excise tax on diesel spiked from $0.16 to $0.36 and the sales tax on diesel increased from 9% to 13%.

California’s infrastructure is woefully inadequate….failing freeways, bridges and surface streets.  We could on and on about how we got here by our lawmakers stealing from the transportation fund and putting the money into the general fund to pay for the latest pet project, but, we have been down that road before.

Oh, did we mention, this is not the last of the increases?  We will see more on January 1, 2018, July 1, 2019 and July 1, 2020.

CALIFORNIA LAW MAKERS ARE AT IT AGAIN

Fuel Island 009California’s roads are dilapidated.  There is no arguing that point. But, they did not get that way because the citizens are not taxed enough. Quite the contrary.  Californians pay some of the highest fuel taxes in the country.  Lawmakers, however, routinely rob funds (collected through taxes and fees) that are earmarked for roads in favor of sending the money to the general fund. Who knows what happens to it then, but we can guarantee it is not spent on roads and infrastructure.

Well, California’s elected officials are at it again. Governor Jerry Brown announced a plan to generate $5B per year by increasing the fuel tax by $0.12 per gallon, initiating a $100 annual fee on electric vehicles, increase vehicle registration fees and creating “new taxes.”

The plan supposedly has oversight to ensure the money is spent on transportation and not diverted to other priorities.  Excuse the skepticism, but we have heard that before.