SACRAMENTO (CBS SF) — California lawmakers are considering a hike in the state gas tax. It would be the first increase in 20 years.
The proposed 12 cent per gallon increase would go to pay for infrastructure. California needs billions more dollars to repair its crumbling roads.
Revenues are down due to the increase in hybrids and electric cars. Drivers are using less gas which means the state is not collecting as much money.
“We have these Teslas that are being sold and they don’t pay any gas tax,” said Senator Jim Beall (D – San Jose). “We need money to maintain the roads.”
Opponents of the tax say voters need assurances the money won’t actually be used to repair and maintain the roads.
If adopted, electric cars would not be exempt. Those car owners would pay their share with higher registration fees.