After the new gas taxes, just say no

April 13, 2017

Mike Brown

OPINION by MICHAEL BROWN

Surprise, surprise – San Luis Obispo County Supervisors Debbie Arnold and Lynn Compton and the Central Coast Taxpayers’ Association were absolutely right in opposing the 2016 Measure J countywide sales tax increase.  At the time, they said, this is a state responsibility. Let’s see if the governor and the legislature actually come up with something before we shoot ourselves in the foot with a new local tax.

And guess what?  The legislature just approved a new $52.4 billion dollar dedicated ten-year transportation funding program (Senate Bill 1). In addition to billions for state highway maintenance, the plan contains dedicated annual funding for local streets and roads.

According to the Senate Appropriations Committee, this bill is expected to generate an amount equivalent to $52.4 billion in transportation revenues over a ten-year period, approximately $26.6 billion of which would be dedicated for local expenditures and $25.8 billion for state purposes. Overall revenues are estimated at $2.78 billion in 2017/2018 fiscal year, $4.55 billion in 2018/2019, and $4.88 billion in 2019-20.

Revenues are generally expected to increase annually thereafter, once all revenue sources are fully implemented and specified adjustments are made each year by the CPI, eventually reaching approximately $6.5 billion by the 2026/2027 fiscal year.

In a somewhat devious and obfuscatory fashion the program is presented as having a ten-year life. But the bill actually does not contain a sunset clause on the new taxes at year ten, or ever. Thus, and unless a future legislature rescinds or modifies the tax increases, they will continue indefinitely.

In effect, the program is not simply a huge $52.4 billion transportation program for ten years but a massive and unending confiscation of the people’s resources. The taxes could generate hundreds of billions over the decades. Worse yet, by adding the new taxes, the Sacramento politicians can use existing revenues, which are also increasing, to fund more staff, more raises, more out of control pension costs, more pet projects and patronage.

Back down here at the county level, imagine, if Measure J had passed? SLO County taxpayers would now be double burdened with a new ½ cent sales tax plus increases in the State gasoline tax, diesel fuel tax, and vehicle license fees. Some of the cities already had voter-approved tax overrides, which, had Measure J passed, would have meant that their citizens would be triple taxed.

The county itself, as a government entity, will be better off under the state program than Measure J. The Measure J tax would have provided the County with $50.1 million over the nine-year life of the tax for its local roads in the unincorporated areas. According to SLOCOG estimates, SB 1 will provide the county an average $13.2 million per year, which over nine years, is $118.8 million.

Under the State SB 1 formula the cities will gain less than they would have received under Measure J. For example, the City of San Luis Obispo will receive $14.2 million over nine years under the state program. It was to have received $20.2 million under the Measure J program.

Similarly, the City of Paso Robles will receive $9.5 million over 9 years from the SB 1 allocation. It was slated to receive $13.9 million under Measure J. The other cities will receive proportionally less. These differences are primarily due to the state allocation formula having a stronger weighting for lane miles than Measure J. This benefits the county.

On the other hand, the state program contains a number of urban oriented greenhouse gas reduction, complete streets (lights, benches, trees, bike lanes, etc.), urban design and construction programs, and transit type projects tailored for cities. These should be right up their alleys – figuratively and literally.

An interesting and ironic side light is that the portion of the 12 cent per gallon increase attributable to gasoline for boats and off-highway vehicles will be transferred to the State Parks and Recreation Fund to be used for off highway vehicle and boating programs. The lefties who supported the tax can be thanked for helping secure the future of the Oceano Dunes Vehicle Riding Area.

Sample annual expenditures are outlined below:

·         $1.49 billion for state highway maintenance and rehabilitation.

·         $1.48 billion for local streets and road maintenance and rehabilitation.

·         $769 million for transit purposes.

·         $400 million for state bridge and culvert repair and maintenance.

·         $300 million for trade corridor improvements.

·         $250 million for congested corridor improvements.

·         $200 million for “local partnerships” for local agencies that have adopted local sales tax measures for transportation purposes.

·         $100 million for the active transportation program.

·         $82.4 million for regional transportation improvement plans.

·         j) $27.5 million for interregional transportation improvement plans.

·         k) $25 million for local planning grants (SB 375 planning).

·         $25 million for freeway service patrols.

·         $7 million for transportation research at state universities.

Of course these funds don’t come for free. The new law increases a number of transportation-related taxes and fees on the general public, business, and agriculture as follows:

·         Gasoline excise tax: $0.12 a gallon

·         Diesel excise tax: $0.20 a gallon

·         Diesel sales tax: 4% a gallon

·         Road improvement fee for zero-emission vehicles, as defined: $100 a year

·         Transportation Improvement Fee (TIF): the fee will be based on the market value of the vehicle with the fee range described below:

– $25 per year for vehicles with a market value of $0 to $4,999

– $50 per year for vehicles with a market value 0f $5,000 to $24,999

-$100 per year for vehicles with a market value of $25,000 to $34,999

-$150 per year for vehicles with a market value of $35,000 to $59,999

– $175 per year for vehicles with a market value of $60,000 and higher

The wording requires that the tax rates and fees specified in this bill be adjusted annually based on the Consumer Price Index (CPI).

Keep in mind that prior to SB 1 passing, California already had some of the highest taxes and fees in the nation related to transportation:

Gas tax: California already had the nation’s 7th highest “gas pump” tax at 56.6 cents/gallon (November, 2016). But add in the unique 10-12 cent CA “cap and trade” cost per gallon, and California is in the top 3 states (with PA and WA). National average is 48.9 cents. Yet California has the 9th worst highways.

Cap and trade tax: California has now instituted the highest “cap and trade” tax in the nation – indeed, the only such U.S. tax. Even proponents concede that it will have zero impact on global warming.

Fines and fees: California driving tickets are incredibly high. For example, the fine for a red-light camera ticket is $490. In the next highest state (Washington) the fine is  $124 – $250. In most states it is around $100.

transportation costs: California has the second highest annual cost for owning a car – $4,112, or $370 higher than the other 49 states’ average.







Loading...

15 Comments

  1. rukidding says:

    I will be short and to the fact. We will see little to nothing from this tax.

    (8) 10 Total Votes - 9 up - 1 down
  2. just the facts says:

    Thank you to Supervisors Arnold and Compton and the Central Coast Taxpayers for standing up to the SLOCOG bureaucarcy!

    Some $540,000 plus of our tax dollars was spent to get a Yes on Measure J win.

    The vast majority of the SLOCOG board supported Measure J except for Arnold and Compton!

    Love when these politicos will come around at election time and tell you they are looking out for you! Yea…right!

    (21) 31 Total Votes - 26 up - 5 down
  3. Paso_citizen says:

    This gas tax is just one more way to take your money, this time without you having a vote on it. And I will wager that one way or the other, a very substantial part of the money will go towards Moonbeam’s little train project between Fresno and Bakersfield.

    And I will further wager that as this becomes apparent, SLO county and/or Paso Robles will put on the ballot within next two elections something very similar to the Measure J that got
    defeated in November. The only difference will probably be the wording so it will not take
    66.7% to pass – only 50%+1 or maybe 55%.

    However stupid our ‘elected’ officials are – they are very adept at coming up with ways to
    get your money. And they will.

    (28) 32 Total Votes - 30 up - 2 down
  4. beacon of light says:

    The progressive socialists are in the majority in the State Legislature and aren’t finished with us yet!

    Senator Hertzberg introduced his SB 8 which is a 10 billion dollar sales tax on services.

    And then there is the assault on Prop 13!

    It ‘ain’t over yet! You still have the shirt on your back!

    (24) 32 Total Votes - 28 up - 4 down
  5. Rambunctious says:

    This tax is so outrageous. The cost of everything rises when gas goes up. At least it’s a tax that everyone in the state will pay but it is also a tax that hits the middle and lower class very hard. It’s actually a very cruel way for government to add to their coffers. It is not a road improvement tax either, do not fall for that. It’s purely a we ran out of train money and I want a legacy tax.

    (26) 30 Total Votes - 28 up - 2 down
    • kayaknut says:

      “At least it’s a tax that everyone in the state will pay” except for our elected officials. They are big into rules/taxes for everyone but themselves.

      (6) 10 Total Votes - 8 up - 2 down
  6. avidreader says:

    Mr. Brown gets straight to the point and nails it once again. Refreshing to read the work of someone who does their homework and knows what they’re talking about.

    All those that supported Measure J look like fools now. Ron DeCarli should be fired! Him and his cohorts of private industry, The Wallace Group, should be run out of town. This massive tax increase by the State should definitely hamper any more runs by DeCarli and company to try and shove a huge tax down the throats of SLO County residents. They’ve already started a campaign to fund such an endeavor. Beware

    What the State legislature and our wonderful Gov.Moonbeam have done is hurt the little guy. By raising the gas tax, it EFFECTS EVERYTHING you buy. Let me say that again: everything! More good people and more small businesses will be leaving us, but then again, that’s what the progressives want anyway.

    (28) 36 Total Votes - 32 up - 4 down
  7. whatdouno says:

    I have already changed my shopping habits. Now signed up for subscribe and save with amazon for all the big bulk items I normally purchase at Costco. Will purchase as much from amazon as possible to avoid driving and sales tax. Gets rid of most sales tax, keeps me from driving to SLO from Paso as well. I Will now feel about going south over the grade like south county residents feel about coming over it.
    Sadly it will probably cost people jobs and businesses to fail because other people will begin to do the same thing to save money. A fixed income only goes so far, this burden has become too much and is ridiculous. Just so the State can support illegals.

    (34) 46 Total Votes - 40 up - 6 down
  8. aft50s says:

    I can see red diesel becoming more popular in the future…

    (23) 27 Total Votes - 25 up - 2 down
  9. SLOnative says:

    This is exactly what happened in the early 1990s in Alameda and Contra Costa counties when they voted to increase sales tax by 1/4 percent to complete the on-ramps to Hwy 24 from Hwy 13 and access roads to the Caldecott Tunnels. The State asked for and got passed a similar highway 1/4 percent tax to do the same thing—complete unfinished highway connectors. I wonder how much of these “roads, police and fire” bond money will be spent on the underfunded public employee pensions?

    (30) 36 Total Votes - 33 up - 3 down

Leave a Comment