(The Center Square) - California’s gas tax is going up 2.2 cents Wednesday, bringing the tax to 63.4 cents a gallon in a state that often sees the nation's highest gas prices.
The state’s gas tax is scheduled to go up every year on July 1 under a 2017 law, Senate Bill 1, in order to pay for California’s roads, highways and public transportation systems, according to a bill analysis. That law required the gas tax to be adjusted annually based on the California Consumer Price Index, a list of the average price Californians pay for various goods and services.
According to a transportation funding report from the Legislative Analyst’s Office, the gas tax was expected to generate $7.6 billion in fiscal year 2025-26. Of that money, roughly $1.9 billion went to the road maintenance and rehabilitation account, $2.5 billion went to cities and counties to pay for their roads and public transit, and $4 billion was put into the State Highway Account.
The state’s gas tax is scheduled to go up every year on July 1 under a 2017 law, Senate Bill 1, in order to pay for California’s roads, highways and public transportation systems, according to a bill analysis. That law required the gas tax to be adjusted annually based on the California Consumer Price Index, a list of the average price Californians pay for various goods and services.
According to a transportation funding report from the Legislative Analyst’s Office, the gas tax was expected to generate $7.6 billion in fiscal year 2025-26. Of that money, roughly $1.9 billion went to the road maintenance and rehabilitation account, $2.5 billion went to cities and counties to pay for their roads and public transit, and $4 billion was put into the State Highway Account.