State Senate GOP wants gas tax holiday
Boost to 51.1 cents prompts letter to state budget leaders
SACRAMENTO — With California’s gas tax set to increase 0.6 cents to 51.1 cents on July 1 to account for inflation, members of the Senate Republican Caucus on Wednesday delivered a letter to state budget leaders requesting a “Gas Tax Holiday” that would include a full suspension on state gas tax collection for the 202122 fiscal year, backfilled by the state’s general fund.
This would provide Californians with much-needed financial relief while ensuring that transportation infrastructure projects are not impacted, Republicans said.
Below are excerpts from the letter:
“Californians are currently enduring the highest gas prices in the nation, averaging $4.22 for a regular gallon of gasoline, over $1.15 above the national average, according
to AARP. While this legislature is currently deliberating whether to expand the Golden State Stimulus payments to more Californians, it is important to understand that any action intended to provide financial relief to Californians is undermined by the accompanying rise in gasoline excise taxes. The adverse impacts of high gas prices and taxes that we know disproportionately impacts our low to middle-income residents not only affects drivers, it increases the cost of living, including business costs and food prices, hampering our relief efforts and economic recovery.
“On July 1, California’s excise tax on a gallon of gasoline will rise to 51.1 cents.
At a time when the state budget is enjoying historic surpluses, Californians deserve a tax break, not higher taxes. The average family of four pays as much as $800 in gas taxes a year, and this increase is going to cost California drivers an additional $83 million in the next year alone. Gas costs account for 14% of expenditures in the agricultural sector, and raising the gas tax would inherently raise the price of food, further resulting in not just a higher tax at the pump, but also increased costs at the checkout line.
“A gas tax holiday, more specifically, a full moratorium on California’s gasoline excise tax collection, backfilled
with general fund dollars for the 2021-2022 Fiscal Year, would provide much needed relief for Californians.”
The full letter is signed by Senate Republican Leader Scott Wilk of Santa Clarita and Sens. Patricia Bates of Laguna Niguel, Andreas Borgeas of Fresno, Brian Dahle of Bieber, Shannon Grove of Bakersfield, Brian Jones of Santee, Melissa Melendez of Lake Elsinore, Jim Nielsen of Tehama and Rosilicie Ochoa Bogh of Yucaipa.