By Senator Rosilicie Ochoa Bogh, 23rd Senate District
When it comes to being first in the nation, California is at the top of the list in many categories. The number of state and national parks? Proudly, California has more than any other state (270 and 9, respectively).
However, if we’re talking about things like affordability – the cost of energy, housing and a gallon of gas – we’re still top in the nation, but the top isn’t necessarily where we want to be.
When it comes to gas, Californians pay the highest cost per gallon in the nation, averaging $4.31 for a regular gallon of gasoline (as of July 13), over $1.17 above the national average, according to AAA.
California’s excise tax on a gallon of gasoline rose to 51.1 cents on July 1. It will rise even higher every year.
The average family of four pays as much as $800 in gas taxes a year, so that increase is going to cost California drivers an additional $83 million in the next year alone.
Further, the adverse impacts of high gas prices and taxes doesn’t just affect drivers. Gas costs account for 14% of expenditures in the agricultural sector, so raising the gas tax raises the price of food, resulting in not just higher taxes at the pump, but also increased costs at the checkout line. Same issue with pretty much anything shipped from point A to point B, which is just about everything these days.
In a time when so many people are buckling under the weight of ever-increasing costs in this state – some pandemic-related, many not – and the state is enjoying a historic surplus, the least the state could do was provide some additional relief for Californians. As we move towards an economic recovery, this is the time families could use more money in their pocketbooks to help pay rent, mortgages and bills, buy food and medicine – and put gas in the car to get to their jobs.
Increased prices for fuel directly increases the cost of living for ALL Californians. It hikes business costs and food prices, hampers relief efforts and slows down economic recovery. Worst, it disproportionately hits middle- to low-income residents.
Californians deserve a tax break, not higher taxes.
Yes, the Legislature has deliberated whether to expand the Golden State Stimulus payments to more Californians, but it’s important to understand that any action intended to provide financial relief to Californians is undermined by the accompanying rise in the gas (excise) tax.
My fellow Senate Republicans and I proposed providing Californians a gas tax holiday for this year. More specifically, a full moratorium on the collection of California’s gasoline excise tax for the rest of this fiscal year, until June 30, 2022. So funding for needed transportation projects wouldn’t be affected, we proposed to pull funds from the state’s General Fund, which has a massive operating surplus this year.
We delivered a letter to the majority party requesting the gas tax holiday knowing it would provide Californians with much needed financial relief while ensuring that transportation infrastructure projects are not impacted. (You can read our letter here.) They declined to consider it. I brought it up on the Senate Floor, trying again to give them the opportunity to do the right thing by the people. They shut it down.
I championed suspending the gas tax because I feel strongly that it’s time to give Californians a break from California’s high cost of living, and that includes the state’s high taxes and gas prices. If not now, when?