Motorists in California saw a 12-cent-per-gallon increase in gas tax starting Nov. 1, bringing the tax per gallon to 30 cents; and the excise tax on diesel fuel jumped 20 cents a gallon to 36 cents. The increase was brought about by Senate Bill 1 (SB1) and is expected to raise $5.2 billion annually for bridge repairs and improvements to mass transit.
The bill, titled, “The Road Repair and Accountability Act of 2017, was opposed by the California Farm Bureau Federation (CFBF) and other agricultural groups, but CFBF Director of Environmental Affairs Cynthia Cory explained in CFBF’s weekly newsletter, AgAlert, on Oct 25, “We were vastly outnumbered by business, labor, city and county government agencies including the California Trucking Association, California Chamber of Commerce, County Supervisors Association of California and the League of California Cities, which strongly supported it.”
There will also be a 4 percent sales-and-use-tax increase on retail sales of diesel fuel. The partial exemption from sales and use rates on diesel fuel sold under an exemption certificate for qualified farming activities and food processing will remain, Cory explained.
More increases are yet to come, beginning on Jan. 1 in a vehicle fee dubbed the Transportation Improvement Fee (TIF) which will be based on the market value of a vehicle. This fee, Cory said, will not apply to commercial vehicles over 10,000 pounds, exempt, historical, or collectible vehicles.
Based on the California Consumer Price Index (CPI), the excise fuel taxes and TIF will be adjusted annually beginning July 1, 2020 in an effort to keep pace with inflation. A bit of good news for users of diesel fuel is that the 4 percent diesel sales tax will not be subject to the annual CPI adjustment.
Cory told WLJ that there are two initiatives underway to put the tax to a vote of the people. This would require obtaining signatures and going through a regular ballot initiative process, which could be a difficult task.
California residents interested in signing the petition to put the tax issue to a vote can do so online. A website, www.nocagastax.com, has been set up for the public to donate to pay for the signature packets needed to bring the measure before voters. The second initiative that puts taxes back as they were and makes it a state vote to increase the tax is available here, http://act.reformcalifornia.org/petitions/cartax/html/gen.
Truck registration
An additional measure in SB 1, which Cory said included 45-50 different items, would start in 2020 and prohibit the Department of Motor Vehicles (DMV) from registering trucks model year 2004 and older unless the owner can show full compliance with the California Air Resources Board Truck and Bus Rule.
Cory explained to WLJ that some older trucks are eligible for a low-use exemption if driven less than 5,000 miles per year. She noted that some farmers only use certain trucks during planting and harvesting of crops and don’t need to drive a lot of miles. Truck owners who have signed up for the Agricultural Mileage provision of the Truck and Bus Rule, and were vigilant about reporting their mileage, will have until 2023 before older trucks can no longer be registered with the DMV. Truck owners who are not using the Agricultural Mileage provision, should be aware of these dates when they will no longer be able to register trucks.
• Jan. 1, 2020 — model years 2004 and older.
• Jan. 1, 2021 — model years 2007 and older.
• Jan. 1 2023 — model years 2010 and older.
While CFBF is continuing to work on the measure, Cory said not everyone who is eligible has signed up for the low-use provision, or they have fallen out of the system.
The measure to end registration of older trucks has come about because of the federal Clean Air Act requiring everyone to meet certain emission requirements. However, she noted that while they still have to meet certain emission requirements there is no law that would prohibit registering older passenger cars.
Cory ended her AgAlert column saying the good news is drivers in California are supposed to see potholes diminish and road quality to improve in the next several years. — Rae Price, WLJ editor
