Signed by Governor Jerry Brown, Jr.

Vote Smart's Synopsis:

Vote to pass a bill that increases taxes and fees to fund transportation-related projects.

Highlights:

• Requires the following starting on November 1, 2017 (Secs. 23, 25, & 32 ):

• Increases the gas tax by $0.12 per gallon;

• Increases the diesel fuel tax by $0.20 per gallon; and

• Increases the sales tax on diesel fuels by an addition 4%.

• Requires an overall increase in tax and fee rates by the same percentage as that of the California Consumer Price Index from November 1, 2017 to November 1, 2019 (Sec. 25).

• Establishes an annual transportation improvement fee based on the market value of a vehicle, which will take effect on January 1, 2018 and ranges between $25 to $175 (Sec. 31).

• Requires an annual fee of $100 per vehicle to be imposed for any owner of a zero-emission vehicle that is a model year of 2020 or later beginning on July 1, 2020 (Sec. 47).

• Appropriates funds to the repayment of $706 million in loans related to transportation (Sec. 9).

• Specifies that revenue from the gasoline tax, diesel tax, transportation improvement fees, and zero-emission vehicle fees will go towards a Road Maintenance and Rehabilitation Account to fund road maintenance and other projects (Sec. 37).

• Requires the revenues attributable to 50% of the $0.20 per-gallon increase in the diesel fuel excise tax to be deposited into the Trade Corridor Enhancement Account to fund freight projects (Sec. 37).

• Appropriates 3.5% of the diesel sales tax revenue and $350 million in revenue from the transportation improvement fees to public transportation projects and expenses (Sec. 37).

• Appropriates $250 million in revenue from the transportation improvement fees to traffic congestion relief projects (Sec. 44).

• Appropriates revenue related to agriculture equipment that resulted from the gas tax increase to agriculture programs (Sec. 29).

• Appropriates revenue related to off-highway vehicles and boats that resulted from the gas tax increase to state parks and boating programs (Sec. 30).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that increases taxes and fees to fund transportation-related projects.

Highlights:

• Requires the following starting on November 1, 2017 (Secs. 23, 25, & 32 ):

• Increases the gas tax by $0.12 per gallon;

• Increases the diesel fuel tax by $0.20 per gallon; and

• Increases the sales tax on diesel fuels by an addition 4%.

• Requires an overall increase in tax and fee rates by the same percentage as that of the California Consumer Price Index from November 1, 2017 to November 1, 2019 (Sec. 25).

• Establishes an annual transportation improvement fee based on the market value of a vehicle, which will take effect on January 1, 2018 and ranges between $25 to $175 (Sec. 31).

• Requires an annual fee of $100 per vehicle to be imposed for any owner of a zero-emission vehicle that is a model year of 2020 or later beginning on July 1, 2020 (Sec. 47).

• Appropriates funds to the repayment of $706 million in loans related to transportation (Sec. 9).

• Specifies that revenue from the gasoline tax, diesel tax, transportation improvement fees, and zero-emission vehicle fees will go towards a Road Maintenance and Rehabilitation Account to fund road maintenance and other projects (Sec. 37).

• Requires the revenues attributable to 50% of the $0.20 per-gallon increase in the diesel fuel excise tax to be deposited into the Trade Corridor Enhancement Account to fund freight projects (Sec. 37).

• Appropriates 3.5% of the diesel sales tax revenue and $350 million in revenue from the transportation improvement fees to public transportation projects and expenses (Sec. 37).

• Appropriates $250 million in revenue from the transportation improvement fees to traffic congestion relief projects (Sec. 44).

• Appropriates revenue related to agriculture equipment that resulted from the gas tax increase to agriculture programs (Sec. 29).

• Appropriates revenue related to off-highway vehicles and boats that resulted from the gas tax increase to state parks and boating programs (Sec. 30).

Full Bill Text