Californians can expect to pay even more for gas when the state's gas tax rises this week.
The excise tax will increase to 51.1 cents on July 1st. That's a .60 cent hike. The increase is tied to a bill that passed in 2017 that automatically raises fuel excise tax yearly to help fund road and bridge repairs. In a letter sent to Gov. Gavin Newsom and legislative leaders, Republican lawmakers have asked for the state to suspend gas tax collection for the 2021-2022 fiscal year and use money from the state’s general fund to cover the tax loss.
“On July 1, California’s excise tax on a gallon of gasoline will rise to 51.1 cents. At a time when the state budget is enjoying historic surpluses, Californians deserve a tax break, not higher taxes,” the letter states.