On April 28th, California’s Governor, Jerry Brown, signed into law a transportation funding deal of $52 billion per year for local and state roads, public transit and trade corridors. Professional drivers are connected as vital contributors for the plan based on an increase of 20 cents in diesel tax.
This funding package consists in a combination of higher fees and taxes; it is described as a first measure for making roadways more secure and for granting an increment to California’s economy. As of November 1st, 2017, the excise rate on diesel will boost by 20 cents, to reach 36 cents, and the estimation is to raise $1.08 billion per year. The money raised by diesel will be assigned to trade corridors, goods movement and freight.
A further round of increases will come into effect in July 2019, when the gas rate will boost 7.5 cents, reaching 47.3 cents. The revenue obtained by the increase of diesel sales tax will be deposited into an account for intercity rail and transit projects. OOIDA supports efforts to generate revenue for transportation work in California but they are opposed for truckers paying more than their responsibilities to help bailing California’s funding hole.