Gas tax in California is one of the highest in the United States, and many drivers are left wondering why they have to pay so much at the pump. In this article, we will explore the factors that contribute to how much gas tax in CA is, including state and federal taxes, transportation funding, and environmental regulations.
State and Federal Taxes
The gas tax in CA is made up of both state and federal taxes. The current state gas tax in California is 51.1 cents per gallon, which is the second-highest in the country, after Pennsylvania. This includes a base excise tax of 41.7 cents per gallon, as well as a variable excise tax that is adjusted each year based on inflation.
In addition to the state gas tax, drivers in California also pay a federal gas tax of 18.4 cents per gallon. This tax is collected by the federal government and is used to fund transportation infrastructure projects across the country.
Transportation Funding
One of the main reasons for the high gas tax in CA is to fund transportation infrastructure projects in the state. The revenue generated by the gas tax is used to fund road maintenance and repair, public transportation, and other transportation-related projects.
In recent years, the state has faced a significant funding gap when it comes to transportation infrastructure. The cost of maintaining and repairing California’s roads and highways has continued to rise, while the revenue generated by the gas tax has not kept pace.
To address this funding gap, California lawmakers passed Senate Bill 1 in 2017, which increased the state gas tax by 12 cents per gallon. This increase was designed to generate an additional $5.4 billion per year in transportation funding.
Environmental Regulations
Environmental regulations also play a role in how much gas tax in CA is. California has some of the most stringent environmental regulations in the country when it comes to air pollution and greenhouse gas emissions.
To meet these regulations, the state has implemented a Low Carbon Fuel Standard (LCFS), which requires fuel suppliers to reduce the carbon intensity of their products over time. This can increase the cost of producing and distributing fuel, which can lead to higher prices at the pump.
Additionally, California has implemented a cap-and-trade program, which requires companies to purchase permits for the carbon emissions they produce. This can also increase the cost of producing and distributing fuel, which can be passed on to consumers in the form of higher prices.
Conclusion
In conclusion, the gas tax in CA is one of the highest in the country, due to a combination of state and federal taxes, transportation funding needs, and environmental regulations. While these factors can make gas more expensive for drivers, they also serve important purposes, such as funding transportation infrastructure and protecting the environment.
As California continues to address its transportation funding needs and work toward reducing greenhouse gas emissions, it is likely that the gas tax will continue to be an important source of revenue. However, it is important for drivers to understand the factors at play and to consider alternative modes of transportation when possible to help reduce their reliance on gasoline.