Mike Colgan/KCBS Radio

Gas Tax Going Up In California On July 1

Bob Butler
June 20, 2019 - 8:59 am

California drivers will be paying another nickel in gas tax starting July 1st to pay for transportation improvements statewide.

Drivers told KCBS Radio that they're not happy about it, as prices at the pump are already the highest in the country, yet the roads are still subpar. 

The tax increase of 5.6 cents per gallon will be used to fund a variety of transportation improvements, including building new freeway overpasses, repairing potholes and acquiring new trains for BART.

Some drivers were skeptical that they'd see any improvements. 

"If so, then great. But we'll see if it translates to that," said Earl Harper, who was filling up at a Chevron station on 14th Street in Oakland. "I'm very familiar with how city budgets work and I know that sometimes things that are promised don't translate to things that's been promised."

Related: Gas Prices May Not Fall After All

The blow from the higher tax may be softened, because oil prices have fallen, according to Patrick DeHaan of Gas Buddies. Gas station operators may not raise prices exactly 5.6 cents and instead pay the tax out of their revenue, he said. 

“This time around since oil prices have been declining and gas prices have been going down, we may not feel much of the increase,” he said. “It may not show up immediately at the pump. It may simply offset future declines that would have taken place."