California’s Gas Tax Jumps July 1 to 63.4 Cents, Highest in the Nation
SACRAMENTO — On July 1, California’s gas tax will rise to 63.4 cents per gallon, the highest state gas tax in the nation. The increase is automatic under Senate Bill 1, the 2017 law that raises the tax every year without a vote of the Legislature.
Republicans are laying the blame for this squarely at the feet of Democrats.
When SB 1 passed, California’s fuel levy was 27.8 cents per gallon. In less than a decade, it has more than doubled and will continue increasing automatically every July.
“Like clockwork, we’re facing another tax increase on Californians,” said Assembly Republican Leader Heath Flora (R-Lodi). “Families are already paying some of the highest gas prices in the country. Instead of raising taxes, we should be trying to make gas more affordable.”
The fuel levy is only part of the cost. On top of the excise tax, Californians pay roughly 13 cents in state and local sales taxes, about 24 cents for cap-and-trade, roughly 20 cents for the Low Carbon Fuel Standard and another 2 cents for the underground storage tank fee.
Altogether, state taxes, fees and mandates add about $1.20 to every gallon of gas sold in California, costing the average driver hundreds of dollars each year. That’s before accounting for global supply and demand or state policies that have contributed to refinery closures and reduced in-state fuel production.
California’s energy affordability crisis is a choice. Assembly Republicans have repeatedly fought to suspend the gas tax and provide relief to working families.
