New gas tax takes effect Jan. 1

This is an archived article and the information in the article may be outdated. Please look at the time stamp on the story to see when it was last updated.

SAN DIEGO -- As 2014 comes to an end, so may the downward trend of gas prices. A new gas tax is about to take effect at the start of the New Year and it could add a significant amount at the pump.

“California has second highest gasoline tax in the nation now, before this new tax kicks in,” said Richard Rider of San Diego Tax Fighters. "We’ll be No. 1 easily when new tax kicks in.”

Beginning Jan. 1, what some call a 'hidden tax' will take effect. The new tax could increase the price per gallon by 75 cents, some estimate.

"We've got what amounts to taxes in the form of cap and trade and this applies to industries and now it’s going to apply to cars," Rider said.

The tax comes courtesy of the California Air Resource Board to help cut down greenhouse gas emissions. It’s part of the billion-dollar cap and trade program in which companies buy carbon allowances that they then sell on an open market.

“It’s going change, quite literally, day-to-day because it’s based on the market for the price of polluting,” Rider said.

Those costs will be passed on to consumers in addition to the regular state and sales tax. The average price per gallon of regular gasoline in California is $2.65, down one dollar from a year ago. Experts believe the new increase will start at about 12 cents a gallon, which may not be felt with the current low prices -- but what happens when prices go back up?

“From Sacramento’s standpoint, it couldn’t have worked out better," Rider said. “It just happens that the bottom has fallen out of the petroleum industry.”

27 comments

  • M Simons

    Tried to get petition going for eliminating the ARB that Arnold started so many years ago. It’s a slow train wreck in process. Wait til it whipsaws past $1.50 tax because others are gaming the cap & trade market.

    • mojoe

      Actually, the ARB is a good thing. You may be old and dying but I’m young and I want my kids to breathe fresh air. Small price to pay for a good cause. The earth does not thrive off money, it is not a business.

      • RM

        Check the wind. I think you’ll find most of our air come from the direction of the ocean. Too bad they don’t tax Kool-ade.

      • mike

        If “the earth does not thrive off money”, please explain fully how a TAX in the state of California only is going to help. Carbon credits (licenses to pollute. Buy more credits, you can put out more pollution), are NOT going to clean the air. They are NOT an incentive for companies to pollute less either, they just raise the price to the consumer. Yes, you are young, with that comes ignorance of how things work apparently. Do some research before you start Saving the Planet please.

      • readsbooksandstuff

        hey kid spin your empty brained head toward the west –see that ocean out there??? past that is this place called CHINA (spells it out slowly for stupid kid in above post) –if you did not hear they don’t care about you or your kids and WILL pollute all that nice air and do so RIGHT NOW –so hugging a tree here will not stop them there –get -it???

        • Michael Eck

          They will punch the hybrid drivers in the stomach for their responsible attitude towards efficiency! Apparently there is a claim hybrid drivers are causing CA to lose money ergo a special hybrid tax.

      • Dave

        Just heard the news say this tax will fund the new high speed rail project.Also known as the money pit.This tax will just keep going up.And pretty soon when the price per gallon goes way up again let’s see how happy you are.And for all the hybrid owners,get ready for a swift kick in the wallet for trying to go green.You think you won’t be affected ? ha haha hahahahahahahahahahahahahahaha.Right!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!Brown is an idiot.Most people will never use the high speed rail.Enjoy your term Brown it will be your last.

      • chuckiechan

        Then move away from down wind of China. We are breathing their industrial waste and cutting our industry to solved a problem that originates in China.
        We are stone stupid, but the politicians are taking advantage of stupidity to rake in more money to shovel into the government furnace. No wonder we need 5 million new peasants do work. I guess they won’t be embarrassed riding burros to work at Burger King.

      • geo

        The Kool Aid train loaded with spoon fed ignorance always arrives loaded with government pawns. Brace yourself, they younger ones ate even more brain dead as the public school systems program their wee little minds.

  • Paul OSullivan

    Why, for the love of God, do you quote Richard Rider, a devout anti-tax libertarian who furnishes mostly political pablum rather than economic analysis? “A UC Berkeley energy and economics expert says the increase will be more like 9 or 10 cents per gallon” – not the 75 cents Rider claims. The best sources for actual economic data is the San Diego Regional Economic Development Corporation or, if you want a more anti-tax biased source, the San Diego County Taxpayers Association. http://www.mercurynews.com/california/ci_27218752/california-fuel-prices-going-up-its-green-house

  • Linda Sills

    This entire thing is evil. a lie and a huge hoax. It is called Agenda 21. You do NOT gave to worry about clean air, you idiot..we have had catalytic converters on cars for decades at the behest of the government. They stopped spewing out Carbon Monoxide a real poisonous gas a long time ago. It was converted to carbon dioxide, what you and every mammal exhales. I suggest you educate yourself..or live under the tyranny in store for you.

  • Michael Eck

    Sacramento will rake in 3 billion from this….More like steal it out of our pockets to hook Special Interests up!. The people that will be affected the most are the ones already struggling or 2/3rds of California. There is no plan to use the monies responsibly to pay down the CA debt! I see a huge disconnect with CA politicians and California reality.

  • Michael Eck

    The 3 billion claimed that this will generate (errr steal from California residents) is not even tagged responsibly to pay down California Debt, the real threat to our future generations.

  • chuckiechan

    The Sacramento Bee forgot to mention it! LOL.
    Cap ‘N Trade is actually a slush fund for democrats. The public unions run the show, and the excess money will go into bureaucratic overhead in the form or more raises and benefits for an already fat public sector.
    Everything that moves on wheels will cost more money. California’s who aren’t public sector workers are getting poorer by the day. Cap ‘N Trade is just a warm up to finance more bureaucracies.

    I’m glad the did it. People need to know what kind of government they have – it’s called a “Kleptocracy”.

  • geo

    Hey, how about we stop importing more people to the US that are not self sufficient, and drive cars that we pay for!

Comments are closed.