California Could Increase Fuel Taxes

California Could Increase Fuel Taxes

State authorities across the U.S are still discussing efforts to increase fuel tax rates in order to obtain needed road work carried out. The nationwide fuel tax has not increased in more than 20 years, since the responsibility for infrastructure financing has decreased over the time.

In the last year, measures have been taken by 19 states, from Maine to Alaska, to increase or examine state’s fuel tax collections with the goal of modernizing bridges and roads. OOIDA considers that there is a clear need to get additional revenue raising fuel tax rate in the most efficient manner.

In the state of California, one bill addressed to the Senate would collect $5.5 billion per year for local and state roads, public transit and trade corridors. From this amount, approximately $3.8 billion would be raised from diesel and gas tax rates.  


If the bill is approved that would mean an increase of 12 cents per gallon of gas. The plan also contains a new vehicle fee of approximately $51 to be paid per year, according to the vehicle’s value. 


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