tsai3904
04-06-2017, 11:48 PM
The California Legislature passed SB 1 today. It passed the Senate by 2 votes (27-11) and passed the Assembly by 1 vote (54-26) (needed 2/3 vote). The Governor will sign the bill.
SB 1 is expected to raise $5 billion in gas taxes and vehicle registration fees a year through the following increases:
1) Increases a number of taxes and fees for transportation purposes:
a) Increases the excise tax on gasoline by $0.12 per gallon, starting November 1, 2017.
b) Increases the excise tax on diesel fuel by $0.20 per gallon, starting November 1, 2017.
c) Increases the sales tax on diesel fuels by an additional 4% increment, starting November 1, 2017.
d) Creates a new annual Transportation Improvement Fee (TIF), starting January 1, 2018, based on the market value of the vehicle with the fee range described below:
i) $25 per year for vehicles with a market value of $0- $4,999;
ii) $50 per year for vehicles with a market value of $5,000 - $24,999;
iii) $100 per year for vehicles with a market value of $25,000 - $34,999;
iv) $150 per year for vehicles with a market value of $35,000 - $59,999; and,
v) $175 per year for vehicles with a market value of $60,000 and higher
e) Creates the Road Improvement Fee of $100 per vehicles for Zero-Emission Vehicles (ZEV)s, as defined, starting in 2020 for model year 2020 and later.
2) Eliminates, starting July 1, 2019, the annual adjustment required by the "Gas Tax Swap," of 2010, and instead imposes a more stable tax by re-establishing the Price Based Excise tax (PBET) at its original rate of $0.173 per gallon. Requires revenues generated from the PBET adjustment to be allocated under the existing statutory framework with 44% for the State Transportation Improvement Program (STIP), 44% for cities and counties for local streets and roads, and 12% for the State Highway Operations and Protection Program (SHOPP).
3) Requires that the tax rates and fees specified in this bill, other than the diesel sales tax, are adjusted annually based on the California Consumer Price Index (CPI).
SB 1 is expected to raise $5 billion in gas taxes and vehicle registration fees a year through the following increases:
1) Increases a number of taxes and fees for transportation purposes:
a) Increases the excise tax on gasoline by $0.12 per gallon, starting November 1, 2017.
b) Increases the excise tax on diesel fuel by $0.20 per gallon, starting November 1, 2017.
c) Increases the sales tax on diesel fuels by an additional 4% increment, starting November 1, 2017.
d) Creates a new annual Transportation Improvement Fee (TIF), starting January 1, 2018, based on the market value of the vehicle with the fee range described below:
i) $25 per year for vehicles with a market value of $0- $4,999;
ii) $50 per year for vehicles with a market value of $5,000 - $24,999;
iii) $100 per year for vehicles with a market value of $25,000 - $34,999;
iv) $150 per year for vehicles with a market value of $35,000 - $59,999; and,
v) $175 per year for vehicles with a market value of $60,000 and higher
e) Creates the Road Improvement Fee of $100 per vehicles for Zero-Emission Vehicles (ZEV)s, as defined, starting in 2020 for model year 2020 and later.
2) Eliminates, starting July 1, 2019, the annual adjustment required by the "Gas Tax Swap," of 2010, and instead imposes a more stable tax by re-establishing the Price Based Excise tax (PBET) at its original rate of $0.173 per gallon. Requires revenues generated from the PBET adjustment to be allocated under the existing statutory framework with 44% for the State Transportation Improvement Program (STIP), 44% for cities and counties for local streets and roads, and 12% for the State Highway Operations and Protection Program (SHOPP).
3) Requires that the tax rates and fees specified in this bill, other than the diesel sales tax, are adjusted annually based on the California Consumer Price Index (CPI).