- On April 6th 2017, the California legislature passed the Road Repair and Accountability Act of 2017 (Senate Bill 1), the largest gas tax in state history. This bill was just signed into law by Governor Brown on April 28th.
- This bill will raise the base gasoline excise tax by 12 cents per gallon, will increase the diesel and biodiesel tax by 20 cents, and will impose annual vehicle licensing fees. The combination of these taxes and fees will provide the state roughly $5 billion a year in transportation funding, and $52 billion over the next 10 years.
- While the passing of Senate Bill 1 is considered a huge win for the Democrats in Sacramento, it did not come easily, as highly controversial last minute deals with hesitant Democrats and Republicans resulted in roughly $1 billion being set aside for projects in areas of Riverside and Modesto.
- With Santa Cruz County having already approved Measure D in December of 2016, which authorized a half cent sales tax that will raise an estimated $17 million per year for local transportation funding, Senate Bill 1 will offer Santa Cruz County an additional $6 million per year, making available an additional $23 million in annual funding for road repair and transportation projects in Santa Cruz County.
- In addition, in response to concerns that the new funds will not be spent solely upon transportation as intended, Senate Bill 1 contains a proposed 2018 constitutional amendment that will guarantee that all of the $5 billion a year, will be used only for transportation repair and projects.
- From Senate Bill 1, which will begin in November of 2017, the City of Santa Cruz can expect to receive $1.48 million annually, whereas Watsonville will receive $1.21 million, Scots Valley $278,000 and Capitola $232,000.
To read more about the relevance of this bill please see our Chamber Newsletter for more details:
To see the specific details on the allocation of the projected funding please visit the following link:
For more information please see the following links: