• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
LeadershipInfrastructure

California Is Raising Gas Tax to Pay for Road, Bridge Repairs

By
Reuters
Reuters
Down Arrow Button Icon
By
Reuters
Reuters
Down Arrow Button Icon
April 7, 2017, 8:46 AM ET

California lawmakers on Thursday approved legislation to increase gasoline taxes and other transportation-related fees for the first time in decades, to fund an ambitious $52 billion plan to repair the state’s sagging infrastructure.

The legislation heads to the desk of Democratic Governor Jerry Brown, who urged its support after the Democratic-led state legislature passed it on Thursday with a 27-11 vote in the Senate and then a 54-26 vote hours later in the Assembly.

“The Democratic Party is the party of doing things, and tonight we did something to fix the roads in California,” Brown said during a news conference after the vote. “We got to fix them. It takes real money.”

The measure will increase the excise tax on gasoline by 12 cents a gallon from the current $0.28 and on diesel fuel by 20 cents a gallon, among other fees, over 10 years. The money will be used for repairs to roads and bridges as well as for anti-congestion projects.

Owners of electric vehicles, who do not use gasoline and would not pay the gas tax, would have to pay a $100 fee to help repair roads. The fees and taxes should raise about $5.2 billion per year.

The average driver in California will see costs increase by about $10 a month, according to Democrats, the Sacramento Bee newspaper reported.

Republicans condemned the plan, saying the state’s transportation taxes and fees were already among the highest in the country.

“Democrats want us to pick up the tab for their decades of neglect,” state party chairman Jim Brulte said in a statement. “The liberal Democrat elites are out of touch and Californians should not be used as a piggy bank for the majority party’s failures.”

California’s transportation systems have gone unrepaired and unexpanded for decades, as budget constraints and politics have stymied plans by Democrats and Republicans alike.

Brown, a fiscal moderate credited with bringing the state back from a $27 billion budget gap, has refused to sign on to plans that involve borrowing money, and Republicans and some moderate Democrats have resisted raising gasoline taxes.

But the same Democratic wave that led California to go two-for-one in favor of former presidential candidate Hillary Clinton last November gave the party a two-thirds majority in both houses of the legislature, enough to pass new taxes without Republican support.

The deal won support of construction companies and labor unions, and Democratic lawmakers on Wednesday put up a unified front on what had been the divisive issue of raising taxes.

About the Author
By Reuters
See full bioRight Arrow Button Icon

Latest in Leadership

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
Fortune Secondary Logo
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Leadership

Big TechAmerican Politics
Your spend as a ‘weapon’: Scott Galloway’s ‘Resist and Unsubscribe’ movement asks you to ditch Amazon, Apple, and Netflix to oppose Trump
By Kristin StollerFebruary 28, 2026
3 hours ago
Gamers celebrating
SuccessCareers
Meet the Gen Z college students who turned Excel into a competitive esport—they’re competing in spreadsheet challenges and it’s helping them land jobs
By Preston ForeFebruary 28, 2026
4 hours ago
world's fair
CommentaryRobots
Something big is happening in AI, but panic is the wrong reaction
By Peter CappelliFebruary 28, 2026
4 hours ago
AIMarkets
The week the AI scare turned real and America realized maybe it isn’t ready for what’s coming
By Nick LichtenbergFebruary 28, 2026
5 hours ago
AIFinance
She joined Block to build AI. Weeks later, AI cost her job.
By Sheryl EstradaFebruary 28, 2026
5 hours ago
Future of Workthe future of work
Have good taste? It may just get you a job during the AI jobs apocalypse, says Sam Altman
By Marco Quiroz-GutierrezFebruary 27, 2026
17 hours ago

Most Popular

placeholder alt text
Success
Japanese companies are paying older workers to sit by a window and do nothing—while Western CEOs demand super-AI productivity just to keep your job
By Orianna Rosa RoyleFebruary 27, 2026
1 day ago
placeholder alt text
Success
Walmart exec says U.S. workforces needs to take inspiration from China where ‘5 year-olds are learning DeepSeek’
By Preston ForeFebruary 27, 2026
1 day ago
placeholder alt text
Commentary
'The Pitt': a masterclass display of DEI in action 
By Robert RabenFebruary 26, 2026
2 days ago
placeholder alt text
Innovation
An MIT roboticist who cofounded bankrupt robot vacuum maker iRobot says Elon Musk’s vision of humanoid robot assistants is ‘pure fantasy thinking’
By Marco Quiroz-GutierrezFebruary 25, 2026
3 days ago
placeholder alt text
Law
China's government intervenes to show Michigan scientists were carrying worms, not biological materials
By Ed White and The Associated PressFebruary 26, 2026
2 days ago
placeholder alt text
Economy
Come 2030, the U.S. deficit will be worth 5.9% of GDP—more than spending on Social Security, and equal to major health programs
By Eleanor PringleFebruary 26, 2026
2 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.