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California Fuel Tax To Increase July 1


As if a trip to the pump isn’t painful enough for California drivers, it’s about to get worse.  The California State Board of Equalization (BOE) voted to raise the state’s fuel tax by 3.5 cents.

By July 1, 2013, the state’s excise tax will increase to 39.5 cents a gallon and the total fuel tax will increase to 70 cents per gallon.

According to the Business Journal, each year the BOE is legally required to adjust the excise tax rate in order in order to ensure a balanced budget.

“The measures, known as the “fuel tax swap,” were established in order to free up money to balance the state budget that had a nearly $20-billion deficit at the time,” the Business Journal reported.

The tax is expected to generate more than $500 million over the next year.  The funds will be used to repair the state’s roads and bridges.

Last year, the state brought in $157 million less than the year prior due to commuters driving more fuel efficient vehicles.

Fuel Taxes On the Rise



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