Senate Republican Leader Bates' Statement on Gas & Car Tax Increase

Senate Bill 1 Takes Effect Today
Wednesday, November 1, 2017

SACRAMENTO – Senate Republican Leader Patricia Bates (R-Laguna Niguel) issued the following statement on the gas and car tax increase that takes effect today. Earlier this year, the liberal supermajority approved Senate Bill 1, a $5.2 billion annual tax increase with no sunset date. To top it off, SB 1 will spend 30 percent of the new taxes for things other than road repairs.

“California's drivers are being punished with higher gas and car taxes for a problem they didn't create. The state’s General Fund has grown from $100 billion in 2013 to more than $125 billion this year – a record high. Yet the liberal supermajority allocated very little from those additional revenues for road repairs. At the same time, the supermajority continued diverting $1 billion each year from existing transportation dollars to general state expenses.

“It didn't have to be this way. Senate Republicans put forth our own transportation plan that would have provided $7.8 billion for our crumbling roads without raising taxes. Instead, drivers will be paying more to fund not just road repairs that could have been paid for with existing dollars, but also other projects such as bike trails and potentially high-speed rail. Californians deserve better,” said Senate Republican Leader Bates.

Senate Bill 1 does the following:

  • November 1, 2017: impose an initial 12 cent per gallon gas tax increase.
  • November 1, 2017: diesel drivers will see a jump of 20 cents a gallon in the base diesel fuel tax. The diesel sales tax goes up from 1.75 percent to 5.75 percent.
  •  January 1, 2018: drivers will have to pay higher vehicle registration fees and can expect an increase of $25 to $175 depending on the value of their car.
  • July 1, 2019: the total amount in gas excise taxes will go up to 47.3 cents a gallon, an increase of 19.5 cents a gallon compared to when the gas tax law was enacted.
  • July 1, 2020: impose a $100 annual registration fee for zero-emission vehicles.
  • All of these fees and taxes will be increased annually for inflation.