The Mercury News

New gasoline tax hits California residents

Raise of about 4 cents per gallon begins today

- By John Woolfolk jwoolfolk@bayareanew­sgroup.com

The record gasoline prices that hammered motorists a year ago haven't returned, but it's going to cost you a little more to fuel up starting this weekend when the state's gas tax goes up.

California's gas tax — already one of the country's highest — will climb 8% today, or about 4 cents a gallon. The increase will bump the total gas tax on a gallon to 57.9 cents.

In a state with the country's second-highest gasoline prices, averaging $4.80 on GasBuddy and $4.83 at AAA, that's going to pinch a bit more.

But it's not expected to change driving habits much heading into the Independen­ce Day holiday weekend. Patrick De Haan, head of petroleum analysis at GasBuddy, said that for the most part, motorists will just “grumble and take it.”

The fuel-savings platform says gas prices nationally are averaging $1 less than a year ago in California and most other states, offsetting the impact of a tax increase. De Haan said inflation and economic uncertaint­y have tempered fuel demand and kept pump prices in check so far this year. More than a third of surveyed drivers are planning road trips this weekend, up 9% over a year ago, he said.

AAA Northern California is projecting a record 5.6 million California­ns will travel for the Independen­ce Day holiday, mostly by automobile.

“What we've found historical­ly last year and this year is that the price of gasoline hasn't impacted people's decisions to make planned trips,” AAA Northern California spokesman John Treanor sais.

News of another gas tax hike drew a sigh from Lee Dargis as she pulled her gray hybrid up to a pump at the Quik Stop in the Santa Cruz County town of Felton, where a gallon of regular gas cost $4.79.

“It seems unavoidabl­e,” Dargis said. “I've gone almost numb with what's going on with prices here in California, for housing, taxes. It just seems

unstoppabl­e. But I can also appreciate that there's lots of roadwork going on. That makes me feel a little bit better about it.”

The gas tax increase comes courtesy of Senate Bill 1, the 2017 state law that increases California's gasoline tax every year to raise more than $52 billion for transporta­tion improvemen­ts and maintenanc­e over 10 years. California voters in 2018 rejected a ballot measure that would have repealed it.

But that hasn't ended the controvers­y over the state's gasoline tax.

Last year, when California gas prices soared well more than $6 a gallon, Republican­s and even Gov. Gavin Newsom, a Democrat who backed SB 1, suggested suspending the 3-cent gas tax increase that took effect a year ago.

But Democrats in the legislatur­e balked, arguing the revenue was needed for roadwork. With the state at the time enjoying a record budget surplus, Newsom settled on sending Middle Class Tax Refunds, ranging from $200 to $1,050 to 23 million taxpayers earning no more than $250,000 or $500,000 for joint filers.

California's just-approved budget closes a projected $31.5 billion shortfall. Republican­s asked Newsom and Democratic lawmakers again this year to suspend the new gas tax increase and Assemblywo­man Laurie Davies, a Laguna Niguel Republican, offered a bill amendment Tuesday to do that.

“Stopping the gas tax increase would be a simple way to make travel more affordable as many continue to struggle to get by,” Davies said on the Assembly floor, arguing the tax will cost California­ns a combined $600 million and citing a new poll that found 4 in 10 California­ns are considerin­g leaving the state, most citing high costs. “As California becomes less and less affordable, people are leaving our state.”

But Assembly Democrats tabled the proposal without comment.

California has long been known for high gas prices, driven largely by state levies and laws requiring a special fuel blend to reduce smog. But the Golden State has competitio­n. The state of Washington topped California in average gas prices this month, according to both GasBuddy and AAA, with prices averaging $4.95 to $4.99.

But California's $4.80$4.83 average for a gallon of gas is still well above the national average of $3.53$3.56.

Last year, with the state's gas prices hitting records, Newsom pointed his finger at oil and gas companies, accusing them of price gouging and threatenin­g a windfall profit tax. But fellow Democrats, fearing it would lead to even higher gas prices, wouldn't go along.

Instead, Newsom and fellow Democrats agreed on a law that took effect this week to create a new state Division of Petroleum Market Oversight to monitor the state's oil industry for market manipulati­on. Whether that yields any relief at the pump remains to be seen as past state investigat­ions on gas prices haven't uncovered industry malfeasanc­e.

But while the governor “demonizes oil and gas industry over high prices,” De Haan said, “the state is taking its fair share as well.”

 ?? JOSE CARLOS FAJARDO — STAFF PHOTOGRAPH­ER ?? Juana Garcia, of Martinez, fills her vehicle's gas tank at 5Star gasoline station in Martinez on Friday. California­ns will pay a total of 57.9cents for every gallon of gasoline they pump after a new gas tax went into effect today
JOSE CARLOS FAJARDO — STAFF PHOTOGRAPH­ER Juana Garcia, of Martinez, fills her vehicle's gas tank at 5Star gasoline station in Martinez on Friday. California­ns will pay a total of 57.9cents for every gallon of gasoline they pump after a new gas tax went into effect today
 ?? KARL MONDON — STAFF PHOTOGRAPH­ER ?? A motorist is surrounded by gas stations Thursday in San Francisco. A projected record 5.6million California­ns are expected to travel this holiday weekend despite a bump of 8% in the state gas tax, which begins today.
KARL MONDON — STAFF PHOTOGRAPH­ER A motorist is surrounded by gas stations Thursday in San Francisco. A projected record 5.6million California­ns are expected to travel this holiday weekend despite a bump of 8% in the state gas tax, which begins today.
 ?? JOSE CARLOS FAJARDO — STAFF PHOTOGRAPH­ER ?? Cars queue for gas at the Safeway fuel station in Pleasant Hill on Friday. Gas was selling for $4.35 for cash and $4.45 for credit, but it will increase by 4 cents today.
JOSE CARLOS FAJARDO — STAFF PHOTOGRAPH­ER Cars queue for gas at the Safeway fuel station in Pleasant Hill on Friday. Gas was selling for $4.35 for cash and $4.45 for credit, but it will increase by 4 cents today.

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