California gas tax rate set to increase July 1; no diesel tax jump
June 24, 2019
Another fuel rate increase in California is set to take effect on July 1.
The excise tax collected on gas purchases is set at 41.7 cents and the diesel rate is 36 cents. At the first of the month, the gas rate will increase by 5.6 cents per gallon to 47.1 cents.
The diesel tax in the Golden State will remain unchanged.
The latest increase to gas is part of a 2017 transportation funding deal that raised the excise tax on diesel and gas by 20 cents and 12 cents, respectively. Vehicle fee increases were also included in the funding deal.
The 10-year, $52 billion transportation funding deal – SB1 – signed by then-Gov. Jerry Brown is touted to benefit local roads, trade corridors and public transit. With the exception of the tax on diesel fuel sales, all tax and fee rates also are slated to be indexed to inflation starting July 1, 2020.
In November 2018, voters rejected a ballot question to repeal the vehicle tax and fee increases.
State officials say the new revenue already is being put to good use. They tout repairs or replacement of 89 bridges and paving more than 1,300 lane miles of the state highway system.
By 2027, the California Department of Transportation estimates SB1 funds will enable the agency to fix more than 17,000 lane miles of pavement, 500 bridges and 55,000 culverts.