Following the presentations of Assembly Bill 398 (Eduardo Garcia) and Assembly Bill 617 (Cristina Garcia), two measures that push for the expansion of the cap-and-trade program and raise more taxes on all Californians, Democrat members of the Senate Appropriations Committee passed both measures along party lines. These two onerous measures are estimated to increase gas taxes by a minimum of $0.63* per gallon, on top of the recently passed $0.19 per gallon gas and car tax increase. Vice Chair of the Senate Budget Committee, Senator Jim Nielsen (R-Tehama), issued the following statement:
“Californians were hit with a $52 billion gas and car tax increase in April.
“Today, we are hit again with another gas tax. We will soon have to pay another $0.63* per gallon to fuel our cars – a total increase of $0.82 per gallon based on estimates from the independent Legislative Analyst.
“This ‘cap-and-trade deal’ is for the elites, not everyday Californians, to pay for their pet projects. This is a crushing blow to California residents. When will it ever be enough for Sacramento politicians?”
Both measures are expected to be voted on by the full Senate and Assembly in today’s floor sessions.
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.
***Information based on Edmunds.com.