California Gas Tax Increase: What You Need To Know
With gas prices steadily increasing across California, the state legislature has recently passed an additional gas tax increase. This new tax, which is expected to come into effect in July 2023, is expected to raise prices even further. While there are some exemptions and discounts, the new law is likely to affect all Californians in some way. In this article, we'll look at what you need to know about the new gas tax increase.
How Much Will the Gas Tax Increase?
The new gas tax increase will add an additional 12.5 cents per gallon on top of the existing state tax rate. This means that the current tax rate of 18 cents per gallon will rise to 30.5 cents per gallon. The new tax rate also applies to diesel fuel, which will increase from 13.5 cents to 26 cents per gallon.
Who Is Exempt from the Gas Tax Increase?
The good news is that there are a number of exemptions and discounts that are available to help offset the gas tax increase. For example, those who qualify for the state's Low-Income Exemption Program will be eligible for a 50 percent discount on their taxes. Those who use biodiesel fuel will also be eligible for a 25 percent discount. Additionally, those who use natural gas or propane as a motor fuel will not be subject to the new tax.
What Else Should I Know About the Gas Tax Increase?
The new gas tax increase is intended to fund a variety of infrastructure projects across the state. These projects include improvements to roads and bridges, public transit systems, and other transportation-related projects. Additionally, the new tax is expected to generate $4.5 billion annually for the state of California, which will be used to fund a variety of other initiatives.
How Will the Gas Tax Increase Affect Me?
The gas tax increase is likely to have a significant impact on Californians, particularly those who are already struggling to pay their bills. The tax is expected to raise gas prices by an average of 12.5 cents per gallon, which could have a significant impact on the budgets of many individuals and families. Additionally, the increase could also cause many businesses to raise their prices or reduce their services, which could lead to fewer jobs and fewer opportunities for people in the state.
What Can I Do to Reduce the Impact of the Gas Tax Increase?
Although the gas tax increase is likely to have a significant impact on many people, there are some steps you can take to reduce its impact. For example, you can consider using public transportation, carpooling, or biking to work instead of driving your own vehicle. Additionally, you can also look into alternative fuel sources, such as natural gas or propane, which are not subject to the new tax. Finally, you can also take advantage of the various exemptions and discounts available to help offset the cost of the tax.
Conclusion
The gas tax increase is likely to have a significant impact on many Californians, especially those who are already struggling to make ends meet. However, there are a number of exemptions and discounts available to help offset the cost of the tax. Additionally, you can also take steps to reduce the impact of the increase by using public transportation, carpooling, or biking to work instead of driving your own vehicle. By taking these steps, you can help reduce the impact of the new gas tax increase.