California enacts $52 billion fuel tax hike for road, bridge repairs
EV owners will pay a $100 annual fee in lieu of gas taxes.
LOS ANGELES, April 28 (Reuters) - California Governor Jerry Brown signed into law on Friday a bill to raise gasoline taxes and other transportation-related fees for the first time in decades in an ambitious $52 billion plan to repair the state's long-neglected roads and bridges. The measure will increase excise taxes on gasoline by 12 cents per gallon, from the current rate of 28 cents, and on diesel fuel by 20 cents per gallon over the next 10 years. It will go into effect in November.
The bill cleared the state legislature three weeks ago, on the strength of a two-thirds super-majority the Democrats wield in both houses that allows them to pass new taxes with little or no Republican support.
Republicans condemned the increases, saying the state's transportation taxes and fees are already among the highest in the nation. They call the measure the largest gasoline tax in California's history.
"Californians got a lemon of a gas and car tax hike today," Senate Republican leader Patricia Bates said.
The average motorist in California, a state renowned for its car culture, will see transportation costs rise by about $10 a month, the bill's supporters say. The governor insisted the pain of higher taxes would be more than offset by economic benefits.
(AutoBlog.com)
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