California Gas Tax Repeal, What You Need to Know!

November 30, 2018

As a registered voter, it is important to take advantage of your rights and go to the polls. Before casting your ballot, it is even more crucial to know the truth about the issues you vote on. Be aware of the California gas tax repeal or consult Los Angeles tax preparation services for more information before you vote on this issue, covered under Proposition 6.

What is the California Gas Tax?

In the spring of 2017, lawmakers approved Senate Bill 1 which increased gas taxes by 12 cents a gallon, diesel taxes by 20 cents a gallon and placed a four percent increase on diesel sales tax. It also raised vehicle registration fees by $25 to $175 annually depending on the value of the vehicle. The additional funds generated are designated for repairs to California’s road and highway systems as well as other transportation projects.

Why is a Repeal Being Considered?

Supporters of Proposition 6 argue that the state of California already has the necessary funds for adequate road maintenance. Many feel it is better for California residents to save money at the gas pumps and on vehicle fees than to put more money into infrastructure. If Proposition 6 passes, California residents would save around $5 billion each year. A Los Angeles accounting firm can help you determine exactly how much you could save if the tax is repealed.

Why Are Some Against the Repeal?

Although repealing the California gas tax would save motorists money initially, some are concerned poor road conditions resulting from the loss of funds would eventually end up costing California drivers similar amounts of money in the future. Wear and tear on vehicles from potholes or other hazards is the main point behind that argument.

There are additional benefits and drawbacks of Proposition 6 to take into consideration before voting on it. Los Angeles accounting services are prepared to help you understand the full scope of the proposition and why it is an important issue. Learn what you need to know today so you can vote the right way.