Gov. Brown signs gas tax plan into law
SACRAMENTO — California drivers will see gas prices jump in November and will pay more to register their vehicles come January after Gov. Jerry Brown signed into law Friday a tax hike of $5 billion per year to fix the state’s crumbling highways.
Brown and his legislative allies said the money is badly needed to fill potholes and repair rutted roads that lengthen commutes and damage vehicles.
“Safe and smooth roads make California a better place to live and strengthen our economy,” Brown said in a statement. “This legislation will put thousands of people to work.”
In the bill, SB1, the money is split roughly evenly between state highways and local roads.
The California Transportation Commission, appointed mostly by Brown, will approve projects for the funding and the first new construction work on state highways will likely begin in the summer of 2018, said Mark Dinger, a spokesman for Caltrans. Dinger said some existing projects may be sped up.
Local projects could get off the ground sooner, said Randy Breault, a public works director in Brisbane who serves on the board of directors for the California League of Cities. Once cities know when they will receive the money, he said some may be able to begin work on projects within weeks.
The plan aims to address a $59 billion backlog in deferred maintenance on state highways and $78 billion on local roads. It raises gas taxes by 12 cents per gallon in November, and to 19.5 cents increase by 2020. Diesel taxes will rise by 20 cents per gallon and diesel sales taxes by 4 percent.
Drivers will pay a new vehicle registration fee ranging from $25 to $175 depending on value of their vehicles.