California's gas tax rises for the first time in 23 years

Jeannie Matthews
October 31, 2017

On Wednesday California's gas tax hike goes into effect in an effort to raise billions of dollars for transportation projects. Jerry Brown signed the legislation in April.

Gas prices are going up this week, during a time of year Southern Californians usually see them drop, and it's all because of a new state tax.

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Republicans view the tax increase as a highly unpopular move that will draw voters from across California to the polls in the midterm election. The state is just one of more than 20 states that have passed gas tax increases over the last five years to help with road repairs. The fees range from $25 for cars worth less than $5,000 to $175 for those valued at more than $60,000. Also down the road - higher license fees, a new value-based vehicle fee and a $100 a year fee for electric auto drivers. Beginning July 2020, the state will impose a $100 annual fee on owners of electric vehicles.

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