Newport Beach City Council Pulls a U-Turn On Using Gas Tax Money For Road Repairs

by stephanieargyros on September 27, 2017

in Latest News

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As Californians brace for a new gas tax hike, the Newport Beach City Council sought to send a clear message to lawmakers.

Residents will shortly pay $0.12 more for a gallon of regular gasoline and $0.20 more for a gallon of diesel fuel. The argument concerns whether residents can get some of the tax money back as much-needed street repairs.

The new tax will also add fees to electric vehicles and other added “vehicle fees.” The purpose of Senate Bill 1 (SB1), beginning November 1, 2017, is to improve California road conditions.

California Senate Bill 1

SB1 was passed in April 2017 to generate billions of dollars necessary to repair state roads. The increases go into effect in November 2017 but registration fees for new vehicles increase on January 1, 2018. Zero-emission vehicle fees start July 1, 2020.

The goal of SB1 is to raise $52.4 billion in 10 years by:

  • Increasing gasoline excise taxes by $0.12 per gallon
  • Increasing diesel excise taxes by $0.20 per gallon
  • Increasing the diesel sales tax by 5.75 percent
  • Increasing new vehicle fees, based on vehicle value (from $25-$175)
  • Increasing annual fees on zero-emission vehicles by $100 per year

SB1 will raise the gas excise tax in California to $0.30 per gallon.

Newport Beach MacArthur Boulevard-University Drive Repaving

Newport Beach’s community-strong spirit is reflected by a recent council meeting. Council members of Newport Beach show the willingness to make lemonade out of lemons.

The proposed first $481,000 disbursement is intended to go toward the repaving of MacArthur Boulevard and University Drive. If the proposal is approved, funds for the project would be available next year. The city estimates its 2018 share of taxes would be about $1.4 million.

Some members of the city council say the tax is “bad, regressive policy.” Yet members of the council agreed on the idea of bringing some good from the new tax. They voted to unanimously pursue road improvement funds. A former assemblywoman said, “It’s our money… we want the roads fixed.”

The gas tax issue is divided by party lines. Republicans want to repeal it, perhaps by a state-wide referendum.

Newport Beach is community-strong. If you’re in search of a luxury property in the Newport Beach area, contact The Argyros Group’s realty professionals to begin now at 949-500-4470.

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Post by Stephanie Argyros

Stephanie has written 252 articles.

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