California Republicans propose a year off gas tax increases. It’s not going to happen
America is the land of the free and home of the brave, but California wins the title of the most outrageous gas tax.
And, just in time for the Fourth of July holiday, the Golden State’s gas tax will rise again, to a total of 51.1 cents per gallon.
The tax goes up July 1, continuing a process that began in 2017 after the Democratic-run state Legislature decided higher fuel taxes were the only means for California to get more money for its huge backlog of maintenance on roads and bridges.
California has the highest gas taxes in the nation. The American Petroleum Institute says state taxes and fees add 63.05 cents to every gallon of gas. Tack on federal taxes, and Californians pay 81.45 cents per gallon just in taxes and fees. State taxes for diesel are even higher, at 83.06 cents per gallon. Diesel is widely used in the San Joaquin Valley’s farming sector.
As of last Thursday, Fresno County’s average price per gallon of unleaded was $4.15. The state average was $4.24. The cheapest average in the central San Joaquin Valley was Kings County, at $4.08 per gallon.
Given this shock-at-the-pump reality, California’s nine Republican state senators on Wednesday proposed a gas tax “holiday” in which the tax would be suspended for the 2021-22 fiscal year. “At a time when the state budget is enjoying historic surpluses, Californians deserve a tax break, not higher taxes,” the senators say in a letter to Gov. Gavin Newsom and Democratic leaders in the Legislature.
That surplus is indeed historic: an estimated $75.7 billion, thanks to a strong stock market and sizable number of professionals who kept working from home during the COVID pandemic and thus generated income taxes. The general fund, the main part of the state’s budget, itself is $164.5 billion.
Signing the letter was Sen. Andreas Borgeas, whose 8th District includes Fresno. “As California emerges from the pandemic-induced recession, the last thing Californians need is another tax increase — especially given that the state has a multibillion-dollar surplus. I respectfully urge the governor to indefinitely suspend this increase to get Californians back on their feet.”
The Bee’s Editorial Board has argued that California, with its staggering amount of money, should not have to resort to higher taxes on fuel to pay for road repairs. But the simple fact is there are only nine GOP senators in the upper house, compared to 31 Democrats. Republicans are also the distinct minority in the Assembly; Democrats have a legislative supermajority in Sacramento, plus Gov. Gavin Newsom is a Democrat.
So a Republican call for a tax holiday, which is a great idea, is not going to happen. The land of the free — at least free of taxes — California is not.
Tax to fix roads
The state definitely needs to fix its roads. California is ranked third worst for roadway quality.
The gas tax and registration fees have generated $16 billion since Gov. Jerry Brown signed SB 1 into law in April 2017. But Caltrans says it does not have enough money for all the projects it has identified. In a report to the state Transportation Commission this past spring, the agency said it had enough money for 45% of the total needs.
California pays twice the national average cost of road repair — $15,952 — due to higher labor costs. And gas tax revenues dropped last year due to the pandemic forcing people to work from home.
A new method for generating maintenance money must be found. Some states are considering taxes based on how far each motorist drives, sort of a user fee, rather than a flat tax on fuel.
Until a new process is found, however, high gas taxes are Californians’ lot in life. Who gets hurt the most? Lowest-income people because gas taxes are regressive, meaning the burden is greatest for those with the least income. The San Joaquin Valley has a high poverty rate.
Far from the freedom inspired by the Fourth of July, California’s gas charge feels a lot like taxation without representation.
This story was originally published June 25, 2021 at 5:00 AM with the headline "California Republicans propose a year off gas tax increases. It’s not going to happen."