Kara Sears
On April 28, 2017, California Governor Jerry Brown signed into law a bill to raise gasoline taxes and other transportation-related fees for the first time in decades. The bill, known as the Road Repair and Accountability Act of 2017 (RRAA), increased the gas tax by 12 cents per gallon, from 29.7 cents per gallon to 41.7 cents per gallon. The increase in gas taxes sparked controversy, with Republicans arguing that California's taxes were already too high and calling for a repeal of the gas tax increase. Despite the opposition, Gov. Brown defended the legislation, stating that it would create jobs and strengthen the state's economy.
| Characteristics | Values |
|---|---|
| Date | 28 April 2017 |
| Name of the bill | The Road Repair and Accountability Act of 2017 (RRAA) |
| Increase in gas tax | 12 cents per gallon |
| Previous gas tax rate | 29.7 cents per gallon |
| New gas tax rate | 41.7 cents per gallon |
| Increase in diesel tax | 20 cents per gallon |
| Previous diesel tax rate | 16 cents per gallon |
| New diesel tax rate | 36 cents per gallon |
| Increase in sales tax on diesel fuels | 4% |
| Previous sales tax on diesel fuels | 9% |
| New sales tax on diesel fuels | 13% |
| State | California |
| Governor | Jerry Brown |
| Party | Democrat |
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What You'll Learn
Gov. Jerry Brown signs a bill to increase gas taxes
On April 28, 2017, California Governor Jerry Brown signed into law a bill to raise gasoline taxes and other transportation-related fees. This was the first increase in such taxes in decades. The bill, known as the Road Repair and Accountability Act of 2017 (RRAA), or Senate Bill 1, aimed to generate an estimated $52.4 billion between 2017 and 2027 to repair the state's long-neglected roads and bridges.
The RRAA increased the gas excise tax by 12 cents per gallon, from 29.7 cents per gallon to 41.7 cents per gallon. It also increased the diesel excise tax by 20 cents per gallon, from 16 cents per gallon to 36 cents per gallon. Additionally, the sales tax on diesel fuels was raised by an extra 4 percentage points, from 9% to 13%.
Governor Brown defended the bill, stating, "Safe and smooth roads make California a better place to live and strengthen our economy. This legislation will put thousands of people to work." Senate President Kevin de León also praised the legislation, calling it a "fiscally responsible plan" to address the state's transportation infrastructure.
However, the gas tax increase was met with opposition from Republicans, who argued that California's transportation taxes and fees were already among the highest in the nation. They criticized Governor Brown for raising taxes instead of allocating existing funds towards road repairs. Ballot initiatives and recall campaigns were launched by Republicans to repeal the gas tax increase. Despite this opposition, the bill was passed with a two-thirds super-majority by Democrats in both houses of the state legislature.
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The bill aims to raise $52 billion for road repairs
On April 28, 2017, California Governor Jerry Brown signed into law a bill to raise gasoline taxes and other transportation-related fees. The bill, known as the Road Repair and Accountability Act of 2017 (RRAA), aimed to generate an estimated $52 billion in revenue over a ten-year period to fund the state's road and bridge repair and maintenance projects.
The RRAA included several measures to increase transportation-related taxes and fees. The gasoline excise tax was increased by 12 cents per gallon, from 28 or 29.7 cents to 41.7 cents per gallon. This was expected to increase taxes for the average motorist in California by about $10 per month. The diesel excise tax was also increased by 20 cents per gallon, from 16 cents to 36 cents per gallon. Additionally, the sales tax on diesel fuels was increased by 4 percentage points, from 9% to 13%. These tax increases went into effect on November 1, 2017.
Supporters of the bill argued that the increased taxes were necessary to address the state's long-neglected transportation infrastructure. Gov. Brown stated that "safe and smooth roads make California a better place to live and strengthen our economy. This legislation will put thousands of people to work." Senate President Kevin de León also praised the legislation, calling it a "fiscally responsible plan" to address the state's "decrepit transportation infrastructure."
However, the bill faced opposition, particularly from Republicans, who argued that California's transportation taxes and fees were already among the highest in the nation. They criticized the measure as a "lemon of a gas and car tax hike" and initiated ballot initiatives and recall campaigns to repeal the tax increase. Despite this opposition, the bill was passed with a two-thirds super-majority by Democrats in both houses of the state legislature.
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Republicans oppose the bill, citing high taxes
On April 28, 2017, California Governor Jerry Brown signed into law a bill to raise gasoline taxes and other transportation-related fees. The bill, known as the Road Repair and Accountability Act of 2017 (RRAA), increased the gas tax by 12 cents per gallon, from 29.7 cents per gallon to 41.7 cents per gallon. The legislation also increased taxes on diesel fuel and created additional fees for zero-emission vehicles.
The bill faced significant opposition from Republicans, who argued that California's taxes were already too high. They criticized the measure as the largest gasoline tax in the state's history and pointed out that Californians would have to pay even more to drive, in a state already renowned for its car culture. The average motorist in California would see transportation costs rise by about $10 a month. Republicans also argued that the high taxes would drive businesses out of California, and that the state should instead focus on reworking its tax system to generate more stable revenues.
In response to the bill, Republicans in California launched ballot initiatives and recall campaigns aimed at repealing the gas tax increase. Asm. Travis Allen (R-72) sued Attorney General Xavier Becerra (R) in 2017, arguing that the ballot title and summary for the repeal initiative would mislead voters. Republicans also targeted Democratic lawmakers who voted for the tax increase in radio ads, highlighting the negative impact on farmers and other Californians who rely on transportation.
Despite the opposition, the bill was able to pass due to the support of most Democrats in the state legislature. The bill's supporters argued that the increased taxes were necessary to fund much-needed repairs and improvements to California's roads and bridges. Gov. Brown defended the legislation, stating that safe and smooth roads would make California a better place to live and strengthen the state's economy. He also emphasized that the bill would put thousands of people to work.
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Democrats defend the bill as fiscally responsible
Gov. Jerry Brown (D) signed the gas tax bill into law on April 28, 2017. The bill increased the gas tax by 12 cents per gallon, from 29.7 cents per gallon to 41.7 cents per gallon.
Democrats defended the bill as fiscally responsible, arguing that it would address California's decrepit transportation infrastructure and create jobs. Senate President Kevin de León (D-24) supported the bill, stating that it was a "fiscally responsible plan" to address the state's transportation infrastructure issues. Gov. Brown himself commented that "safe and smooth roads make California a better place to live and strengthen our economy. This legislation will put thousands of people to work."
Supporters of the bill, including Democrats, asserted that the tax increase was necessary to fix the state's roads and bridges. They believed that the additional revenue generated from the tax hike would fund much-needed repairs and improvements to California's transportation network. This, in turn, would have a positive impact on the state's economy and create job opportunities for Californians.
Furthermore, Democrats argued that the bill was a win for everyone, especially the people of California, as stated by McCarthy. They contended that the tax increase would benefit the state as a whole by improving road safety, enhancing the efficiency of transportation, and boosting the economy through infrastructure development.
Additionally, Democrats countered Republican arguments about high tax rates by emphasizing the negative impact of eliminating the SALT deduction. Gov. Brown and New York Gov. Andrew Cuomo warned that the elimination of the SALT deduction would disproportionately affect populous states like California and New York. They asserted that the combination of high taxes and the loss of SALT would create a significant financial burden on middle- and lower-income earners in these states.
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Gov. Brown's response to criticism
Gov. Brown signed the bill to increase California's gas tax by 12 cents per gallon on April 28, 2017. This decision attracted criticism from Republicans, who argued that the high taxes in California would be exacerbated by the potential elimination of the SALT deduction. In response to this criticism, Gov. Brown expressed concern about the potential impact of the GOP tax reform plan on state tax levels. In a letter to California Congressional Republicans, he argued that eliminating an individual's ability to deduct their state taxes while preserving corporations' ability to do so was "a horrible idea". He also questioned the financial burden on citizens, stating:
> Can you tell me how much your neighbors and fellow citizens will have to pay because of this proposal? Budget analysts say that it will cost them many thousands of dollars.
Gov. Brown and New York Gov. Andrew Cuomo held a conference call to address the disproportionate impact that the SALT elimination would have on their populous states. They warned that the proposal would negatively affect citizens and that budget analysts predicted it would cost taxpayers thousands of dollars. However, Republicans countered that the SALT deduction primarily benefited wealthy taxpayers and that doubling the individual deduction would provide tax relief for middle- and lower-income earners.
In response to the criticism from Republicans, Gov. Brown's office referred to the letter he had sent to California Congressional Republicans expressing his concerns about the potential elimination of the SALT deduction. Despite the pushback, Gov. Brown defended his decision to sign the gas tax increase, stating that "safe and smooth roads make California a better place to live and strengthen our economy. This legislation will put thousands of people to work." Senate President Kevin de León supported this sentiment, praising the legislation as a "fiscally responsible plan to address our decrepit transportation infrastructure."
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Frequently asked questions
Gov. Jerry Brown signed the gas tax into law on April 28, 2017.
The tax was intended to repair and maintain California's roads and bridges.
Republicans opposed the tax, arguing that California's transportation taxes were already among the highest in the nation. There were also attempts to repeal the tax through ballot initiatives and recall campaigns against Democrats who voted for it.
