California gas tax hike takes effect
July 1, 2013
Californians will pay an extra 3.5 cents per gallon of gas beginning Monday. [Mercury News]
The 3.5-cent gas tax increase gives California the highest gas tax in the nation at nearly 72 cents per gallon.
Drivers who travel 15,000 miles and get 20 miles per gallon will pay an extra $26.25 per year.
In February, the five-member state Board of Equalization approved the tax increase as part of a “gas tax swap” that eliminated most sales taxes on fuel purchases in exchange for a higher excise tax.
Revenues from the sales tax fund local government programs, while excise tax on gas funds state highway and mass transit projects.
Board of Equalization member George Runner said the gas tax hike “is based on uncertain projections of future gas prices.”
California drivers are paying an average of $4.03 a gallon, 23 cents more than one year ago.