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California road repair deal will raise gas tax, vehicle fees

Vince Cestone

SACRAMENTO, Calif. (AP) — Fuel taxes and vehicle fees are expected to increase for California residents after state lawmakers passed a major transportation funding deal that aims to raise $52.4 billion over 10 years to fix a massive backlog in road and bridge repairs.

Here’s where the money would come from:


— $24.4 billion by raising gasoline excise taxes. In November, the tax will increase 12 cents per gallon, or 43 percent above the current rate of 27.8 cents, and it will continue to rise over the next few years. The total California gas tax is projected to be 46.7 cents in July 2018 and 47.3 cents in July 2019. Starting in 2020, the tax will change with inflation.

— $7.3 billion by raising the current 16-cent-a-gallon diesel excise tax by 20 cents.

— $3.5 billion by increasing the state diesel sales tax from 9 percent to 13 percent.

— $16.3 billion from an annual transportation improvement fee based on a vehicle’s value. The fees range from $25 for vehicles valued at less than $5,000 to $175 for vehicles topping $60,000.

— $200 million from a new $100 annual fee, starting in 2020, on zero-emission vehicles.

— $706 million in repayments of transportation funds previously loaned to the state’s General Fund.

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The money would be split between state and local governments:

— The local share includes $15 billion to fix potholes, $7.5 billion for public transportation and $1 billion for walking and biking trails.

— The state share includes $15 billion for highway repairs, $4 billion for bridge and culvert repairs, $2.5 billion to reduce traffic on major commuter routes.

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Sources: Governor’s office, Department of Finance, Board of Equalization.WHAT OTHERS ARE CLICKING ON:

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