Urban Fold

Regional Taxes For Transportation?

The NYT looks at a provision in a state assembly bill to restore transit funding to beleaguered CA transit agencies by allowing voters in regions to approve gas fees. Not only was the provision dropped by the Senate - the governor vetoed the bill.

California's chronic indebtedness has caused Gov. Schwarzenegger to regularly raid the State Transit Assistance (STA) account. Now he has proposed swapping the sales tax on gas for an increase in the excise tax that would give motorists a small 'break' at the pump.. The legislature proposed a higher excise tax to make it revenue neutral with an interesting option for regional transit funding.

"The Bay Area commission is perhaps the state's strongest advocate for a proposal that would allow voters to adopt local fees on gasoline and diesel fuel to finance transit service and pay for street and trail improvements that would benefit pedestrians and cyclists.

"Local government and state government need a clear separation," said Randy Rentschler, who follows state legislation for the commission. "Some people would use the word ‘divorce.'"

Thanks to Faramarz Nabavi

Full Story: Politics: A Time to Consider Local Fuel Fees



Irvin Dawid's picture

Correction: Gov. Schwarzenegger Did Sign the Gas Tax-Swap bills

Apologies - the news headlines were that he 'threatened to veto' the legislation but in the end, he signed the two bills.
See Governor Signs Complex Gas Tax Swap
Irvin Dawid, Palo Alto, CA

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