Gas tax goes up every year in California.
The increased revenue is used to pay for the roads.
Gas tax freeze
The gas tax in California is currently 51.1 cents per gallon. This tax rate is raised every year to keep pace with inflation. The money made is then used to fund roads. Read more about it here.
On July 1, there is set to be a 5.6% increase on gas tax in California. This would mean 53.9 cents per gallon of gas. That is a 2.8 cent jump.
According to AAA, the current national average for gas prices is about $4.18. However, California’s average is much higher at $5.72 per gallon.
Gov. Gavin Newsom is working on a proposal to freeze the annual gas tax increase. Unfortunately, with the increase set to happen in the coming months time is too limited to see the freeze be impactful.
Will Californians get any assistance for gas prices?
Because the gas tax freeze fell flat, Newsom generated a new proposal. The proposal is to give drivers $400 per vehicle (up to two per person) as a debit card for gas. He is also looking into funding three months of free public transportation across the whole state.
There are currently a few other proposals on the table. State officials are still deciding what and how much assistance to provide. However, they are looking to provide financial relief because the gas tax will be increasing in July.