California lawmakers propose $7.4 billion transportation bill with 17-cent gas tax increase

Updated Aug 23, 2016

California welcome signCalifornia Assemblyman Jim Frazier and Sen. Jim Beall have filed a $7.4 billion transportation bill that would raise the gas tax by 17 cents per gallon, according to a report by the Los Angeles Times.

The plan would also increase the diesel tax by 30 cents per gallon, add an annual fee of $165 for electric vehicles, create an Office of Transportation inspector general to review spending and create provisions to streamline environmental issues for transportation infrastructure repairs. The fuel taxes would be tied to inflation.

Gov. Jerry Brown had previously proposed a $3.6 billion transportation plan that would have increased the gas tax by 6 cents per gallon.

There is roughly two weeks left in California’s legislative session.

The California Board of Equalization voted in February to lower the state’s gas tax by 2.2 cents per gallon for the fiscal year that ends June 3o, 2017, dropping the tax to 27.8 cents per gallon from 30. California had dropped the gas tax by 6 cents the year before. These two measures were expected to cut transportation revenue by $328 million next year.