The Legislature yesterday passed out two onerous measures – Assembly Bill 398 (Eduardo Garcia) and Assembly Bill 617 (Cristina Garcia) – that will raise taxes on California drivers. Once fully implemented, Californians will have to pay another $0.63* per gallon to fuel our cars, on top of the recently passed car and gas tax of $0.19 – a total increase of $0.82 per gallon based on estimates from the independent Legislative Analyst.

Vice Chair of the Senate Budget Committee, Senator Jim Nielsen (R-Tehama), issued the following statement after voting against these tax increases:

“Drivers will soon have to pay at least $10 more each time they fill up their tank. An average driver fills up their car about once a week.

“This will become highly personal for families.

“How much more taxation will Californians have to take?” 

AB 398 and AB 617 passed both houses of the Legislature, and now move onto the Governor’s desk, where he is expected to sign them into law.

Below is an estimated cost of how much more consumers will pay at the pump each time they fill up their car tank based on top selling cars driven by Californians:

Cap-and-Trade Tax ($0.63*) + Car-and-Gas Tax ($0.19) = New Costs to Drivers ($0.82)

Compact Car**                     Midsized Car**                    Sports Utility Vehicle**
Honda Civic                          Honda Accord                      Toyota Rav4
12.4 gal capacity***             17.2 gal capacity***              15.9 gal capacity***
$10.17 more per tank          $14.10 more per tank           $13.04 more per tank

*Based on a March 29, 2017 calculation by the Legislative Analyst Office of the estimated gas tax increases per gallon based upon a Cap and Trade allowance price scenario, known as the Allowance Price Containment Reserve price, or price ceiling.

**California Auto Outlook, a publication of the New Car Dealers’ Association, Volume 13, Number 2.

***Edmunds.com.