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Senate Republican Leader Scott Wilk (R-Santa Clarita) released the following statement as the first rollout of the “Middle Class Tax Refund” begins:
“More than a year ago, California Republicans called for 51 cents a gallon tax cut, which would have provided immediate relief at the pump. Newsom likes high gas prices, except during election time. Just another ‘sleight of hand’ tactic to try to fool the voters.”
Democrats repeatedly failed to bring that immediate relief; here’s a roadmap of their failures.
Below is a breakdown of all of the additional taxes and fees Californians pay, which adds up to more than $1.00 for every gallon of gas motorists pay.
- 54 cents — State Excise Tax: California’s state excise tax on gasoline is among the highest in the country and it adjusts annually for inflation. The tax rate is largely due to Senate Bill 1, often referred to as the “Gas Tax,” which passed in 2017 and raised the tax by 12 cents. In 2020 the tax started adjusting annually for inflation.
- 18.4 cents — Federal Excise Tax: This is the gasoline tax paid across the country imposed by the federal government.
- 3.7% — Average state and local sales tax: Local governments impose their own sales taxes on gasoline that vary from as low as 2.25% to as high as 5.75%, according to analysis from the state’s Legislative Analyst’s Office.
- 23 cents — Cap-and-trade program: A recent LAO analysis calculated that gasoline producers are passing along that cost to consumers as part of California’s cap-and-trade program, which requires companies to buy permits and credits to account for their greenhouse gas emissions. This is projected to go up to around 70 cents by the end of the decade.
- 18 cents — Low carbon fuel program: This state program in effect since 2011 requires gasoline suppliers to purchase credits from suppliers of low-carbon fuels like renewable diesel.
- 2 cents – Underground gas storage fee: This fee helps mitigate the impacts of leaks and other hazards caused by underground storage of gas.
