California lawmakers approved an increase in gas and diesel taxes to help fund a $52 billion infrastructure spending package. The controversial plan now heads to the Governor’s desk for a signature by the man who spent an enormous amount of time and political capital getting the bill pushed through.
We wrote last week about the proposed gas tax which just barely squeaked by in the State Senate with the minimum 27 votes needed to pass. Now the bill has passed the State Assembly with a 54-26 vote and made it all the way through to Governor Brown – which means it’s as good as law.
The new bill is so controversial that there is even a campaign underway by a talk radio host to recall a State Senator who voted for it. While it is highly unlikely that the campaign will succeed, it is a clear example of how riled up some California residents are getting.
But there’s one group who is supporting the tax increase which may surprise you: The California Trucking Association.
“This transportation package is a win for all Californians, including the trucking industry, which has been significantly impacted by our deteriorating roads and infrastructure,” said the CA Trucking Association in a written statement. “The funding options provided in this measure will give our state a prudent and reliable revenue source to fix our roads and keep goods moving in and through California.”
Nowhere in the press release does the CA Trucking Association mention what some reports claim are the real reason for the trucking lobby’s support: California Air Resources Board (CARB) restrictions will be significantly gutted by the bill.
In order to get the trucking industry’s O.K. to move ahead with a 20-cent-per-gallon diesel tax increase, CA lawmakers added an amendment to the bill which critics are referring to as the “dirty truck amendment.” According to the LA Times, the amendment makes it so that CARB “cannot require truck owners to retire, replace, retrofit or repower their trucks within 13 to 18 years of their model year or when the vehicle hits 800,000 miles.”
In addition to the eased CARB restrictions, lawmakers claim that the trucking industry can look forward to around $34 billion over the next 10 years to repair existing roads, bridges, and highways, as well as around $11 billion to improve critical trade corridors.
Source: overdrive, sacbee, politifact, sacbee, abc, dcvelocity, truckersreport, reuters, CA trucking association
And before the year is out, Gov Moonbeam will hijack 50% of the tax for his train to bankruptcy.
I predict the fuel stations just across the California border are going to start seeing a rise in purchases.
175 gallons of diesel will take you a long way.
That’s an easy one and I used to do it all the time. Buy your fuel in bordering states before you enter Califlower and if you run low on fuel, buy just enough to get out! Either that or boycott the idiot state!
That strategy doesn’t work. You still end up paying the tax on fuel you should have purchased there but didn’t. IFTA.
You are corrected sir! Once carriers indemnify a FSC those cost will be passed on to consumers. This is an additional cost that I haven’t seen any news agencies discussing. Californian”a will be mistaken should they assume this is only costing them .12 p/g at the pump.
All these politicians create new laws and bills and approve these tax hikes and make us pay for it but yet they don’t take a pay cut when it comes to their money!! i’m pretty sure they getting a free pass when it comes to paying taxes!!
Too bad nobody suggested they inquire at the State Comptroller’s or the State’s General Accounting office as to what the state has done with all the tax money already collected on gasoline & fuel sold. Apparently Californians don’t care – they just drop their drawers and take it because they just got screwed again by a corrupt government!
I’d be surprised if the money went to roads and infrastructure. It almost never does. Instead it will go into the ‘general fund’ and be spent on useless projects like studying the delta smelt or some such thing.
The tax will never go away and they will raid it of every penny to pay for welfare services and social programs
This is ridiculous and I think the feds should find a way to get involved,limit the amount of tax a state can impose,why? I m sick and tired of all the California “refugees” movin out,both bussinesses and individuals,I mean tohese arg te not normal people,we are not talking about Okies or Volunteers,these are people whose minds have been corrupted by communism,and they will corrupt any other state they move into…I sure don t want any californian as a neighbor,may be we can give them some $$ but make them sign a legal document stating that they will remain there…anticonstitutional? That bus left the station a looooong time ago.
Will definitely stop going to CA and even next year take it out of annual registration. They slammed the truckers with all these restrictions and taxes so much and now this. Whats enough its enough!!! Their DOT officers are making up excuses to pull you over like what happen to me….he said my blinker light on tractor and trailer does not work in same rhythm. Made me call road service to fix the problem and did level 1 inspection on the truck. The road service tech told them that they are crazy and making stuff up. I still end up paying for service call. They make so much money on us and still wont more and more