California Gasoline Tax Rises by 4 Cents

You might have missed it as legislators didn't vote on it—not this year, anyway—despite attempts by Republicans to suspend the increase.

2 minute read

July 6, 2023, 12:00 PM PDT

By Irvin Dawid


Close-up of hand filling car with gas at gas pump

Rawpixel.com / Adobe Stock

“California’s gas tax — already one of the country’s highest — will climb 8% July 1, or about 4 cents a gallon or 56 cents per 14-gallon fill-up,” reported John Woolfolk for The Mercury News on the same day. “The increase will bump the total gas tax on a gallon of petrol to 57.9 cents.”

The gas tax increase comes courtesy of SB 1, the 2017 state law that increases California’s gasoline tax every year to raise more than $52 billion for transportation improvements and maintenance over 10 years. California voters in 2018 rejected a ballot measure that would have repealed it.

To clarify, Senate Bill 1 increased the gasoline tax by 12 cents per gallon and the diesel excise tax by 20 cents per gallon on Nov. 1, 2017. Period.

Like 21 other states and the District of Columbia, but notably not the federal government, it includes an inflation adjustment, according to the National Conference of State Legislatures, a nonpartisan public officials' association, as of July 14, 2021. [See Planetizen: The Vital Role of Gas Tax Indexing, July 18, 2017].

Republican attempt to suspend gas tax

“California’s just-approved budget closes a projected $31.5 billion shortfall,” adds Woolfolk.

Republicans asked Newsom and Democratic lawmakers again this year to suspend the new gas tax increase [pdf], and Assemblywoman Laurie Davies, a Laguna Niguel Republican, offered a bill amendment Tuesday to do that.

“Stopping the gas tax increase would be a simple way to make travel more affordable as many continue to struggle to get by,” Davies said on the Assembly floor, arguing the tax will cost Californians a combined $600 million and citing a new poll that found four in 10 Californians are considering leaving the state [see 'out-migration'], most citing high costs. “As California becomes less and less affordable, people are leaving our state.”

Her effort fell on deaf ears in the blue state, although it should be noted that Gov. Gavin Newsom had attempted to do the same thing last year. [See related 'gas tax holiday' post below].

Saturday, July 1, 2023 in The Mercury News

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

Close-up of "Apartment for rent" sign in red text on black background in front of blurred building

Trump Administration Could Effectively End Housing Voucher Program

Federal officials are eyeing major cuts to the Section 8 program that helps millions of low-income households pay rent.

April 21, 2025 - Housing Wire

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

April 30, 2025 - Diana Ionescu

Close-up on Canadian flag with Canada Parliament building blurred in background.

Canada vs. Kamala: Whose Liberal Housing Platform Comes Out on Top?

As Canada votes for a new Prime Minister, what can America learn from the leading liberal candidate of its neighbor to the north?

April 28, 2025 - Benjamin Schneider

Washington

Washington State’s Parking Reform Law Could Unlock ‘Countless’ Acres for New Housing

A law that limits how much parking cities can require for residential amd commercial developments could lead to a construction boom.

4 hours ago - Streetsblog USA

Bluebird sitting on branch of green bush.

Wildlife Rebounds After the Eaton Fire

Following the devastation of the Eaton Fire, the return of wildlife and the regrowth of native plants are offering powerful signs of resilience and renewal.

5 hours ago - AP News

1984 Olympics

LA to Replace Inglewood Light Rail Project With Bus Shuttles

LA Metro says the change is in response to community engagement and that the new design will be ready before the 2028 Olympic Games.

6 hours ago - Newsweek

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.