CALIFORNIA—Starting July 1, gas taxes will rise by four cents in the state of California.
The increase in gas prices is made to make up for lost revenue and will affect each gallon of gas, 3.5 cents extra. The current gas price inLos Angelesis $3.57 per gallon and will soon be close to four dollars with the added tax.
The extra money coming from the gas taxes is said to be used towards transit projects and public roads in the state. When Arnold Schwarzenegger was the governor he proposed the “fuel swap” per suggestion of the Supreme Court. This act eliminates the sales tax on gas, which funds local government programs, and raises the excise tax, which funds highway and transit projects for California.
Excise taxes, taxes made when purchasing a specific good like gasoline, will go up from 36 cents per gallon to 39.5 cents.
The California State Board of Equalization writes that, “The laws require the annual sales and excise taxes paid on gasoline to remain revenue neutral assuring the tax burden on consumers is the same. These laws also mandate that the California State Board of Equalization (BOE) adjust the excise tax rate by March 1 of each year in order to ensure revenue neutrality.”
Sales tax on gasoline will be lowered, but everything else will go up in order to budget revenue for the roads and transportation. This gas increase will take place state wide, though other parts of California have higher and lower rates than Los Angeles.
By Camille Sarabia