Gas Tax Increase to Go in Effect July 1st, How Will it Impact Motorists?

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Gas prices are expected to go up on Monday, July 1, 2019, as a result of a gas tax that passed in April 2017.

Senate Bill (SB)1, which passed under Governor Jerry Brown is expected to invest $5.4 billion annually over the next decade to fix California’s transportation system with repairs and upgrades. In addition, according to White House Council of Economic Advisors, each 1 billion spent will support 13,000 jobs a year.

Panic struck many Californians with the reminders of the increase coming July 1, 2019, with people reminding the gas tax will be going up to 47.3 cents per gallon. Being aware of this made motorists panic thinking they would see nearly 50 cents added to their current per-gallon charge.

What Does This Mean for California Motorists?

The current gas tax is already 41.7 cents per gallon, will be increased by 5.6 cents to 47.3 cents per gallon. The average gas tank is 12-15 gallons, meaning it will cost Californians an average of 76 cents per fill up. For most, this won’t cause the impact being argued by those against the passing of the Senate Bill (SB)1. After all, Proposition 6, a ballot measure proposed a repeal of SB-1 and voted on by Californians in November 2018, failed with 57% of voters against it.

The increase does not seem like much, gas taxes in June 2017, were 29.7 cents per gallon. In November 2017, the first increase came with a 12 cent gas tax hike, making it 41.7 cents per gallon.

The average gas price in the U.S. per GasBuddy.com is $2.70 per gallon, with the California average being around $3.65 per gallon.