More Gas Taxes Aren’t the Answer

Have you ever wondered why the cost of gas is so much higher in California than in other states? All you have to do is drive across the border to Arizona and you see the price drop dramatically. To put it simply, in President Reagan’s words, the answer lies with a state government that tries to tax and regulate everything that moves. This fact was at the center of a presentation on gas prices given at a recent meeting of the California Energy Commission’s (CEC) Petroleum Market Advisory Committee. Data showed, not surprisingly, that California drivers pay higher than average prices for gas than those in other states. In 2015, the average difference in price was 74 cents. One of the factors in this price difference is our high taxes. Formally, California’s gas tax is 30 cents per gallon. But the presentation also showed that hidden costs (or de facto taxes) due to environmental laws make up another sizable portion of what we pay at the pump. At least 11 cents of every gallon of gas purchased can be traced back to the state’s misguided cap and trade program. Another 4.3 cents has been tacked on by unelected regulators on the California Air Resources Board to force companies to comply with carbon restrictions in fuels. At present, however, technology does not exist to meet the standard, which could result in expensive penalties and further costs passed on, like always, to consumers. These extra costs essentially increase the gas tax by almost 50 percent, adding roughly 45 cents per gallon of gas due to taxes and regulations. For families who drive cars with 20-gallon tanks, this equates to nearly nine dollars extra a fill-up, and if the car is re-fueled once a week, it adds up to over $450 a year. Yet given these realities, some in Sacramento have still renewed calls for another tax hike on gas. Even though the majority party finds millions to pay for cash cards for felons, unlimited texting and data plans for others, as well as $67 billion for high-speed rail. But Californians should be extremely wary about any push to raise taxes on gas. We need to ask ourselves, how our state can have one of the country’s highest gas taxes, with some of the highest retail prices, and yet still have roads and infrastructure that consistently rank the worst in quality? Besides environmental laws, it also comes down to the fact that existing money is not being used as it should be. For example, $1 billion per year from truck weight fees is being spent on paying budgetary debt, rather than on road repairs. Republicans have proposed reversing this policy by constitutionally guaranteeing that transportation dollars like these would be used for transportation infrastructure. Voters have consistently expressed opposition to the prospect of a higher gas tax, with polls showing Californians are overwhelmingly against the idea. Rather, they want an effective and efficient government. California drivers already face the prospect of inflated and unpredictably high gas prices throughout the year. They should not have to pay even more at the pump while they are also being forced to sustain policies that provide little demonstrated benefit. Senator Mike Morrell, R-Rancho Cucamonga, serves as the Vice-Chair of the Senate Committee on Energy, Utilities, and Communications. He represents the 23rd District in the State Senate which includes portions of Riverside, San Bernardino, and Los Angeles counties.