Drivers in California might soon see some relief as Republican Rep. Kevin Kiley plans to introduce legislation aimed at reducing the state’s high gas tax by threatening to cut federal funds.
The current combined state and federal gas tax sits around 71 cents per gallon. The state tax specifically is about 61.2 cents, which is an increase from 59.6 cents last July, according to the Tax Foundation.
Gas prices in California rank among the highest in the nation, with costs nearly $1.50 above the national average, as reported by AAA.
Kiley noted that despite the high prices, drivers have “very little to show for it.”
The proposed bill would withhold certain federal highway funds from states that exceed a gas tax of 50 cents per gallon.
“This bill sends a clear message: States that tax their citizens too much to cover spending inefficiencies should not expect unlimited federal support,” Kiley explained in a press release. “If Sacramento wants help from Washington, it should stop penalizing drivers.”
Under this proposal, each state could see an 8% cut in funding from programs like the National Highway Performance Program (NHPP) and the Surface Transportation Block Grant Program (STBG).
This initiative comes in the wake of President Donald Trump’s remarks in January, where he hinted at the idea of capping state fuel taxes to help lower fuel prices.
AAA reported that the average gas price across the U.S. was $2.92 in February, while residents of California were paying $4.49.
Kiley’s ambition to lower taxes contrasts with a proposal from California’s Democratic lawmakers, who are considering a tax based on miles driven. This comes amidst a multibillion-dollar budget deficit and a trend of drivers transitioning to electric vehicles.
On January 29, state lawmakers supported AB 1421, a bill introduced by Democrat Lori Wilson. This bill would charge the California Transportation Commission and the state transportation agency with exploring options instead of pushing for a mileage-based tax.
