California Trucking Groups Praise New Diesel Tax for Infrastructure Funding

- California’s state legislature has passed a bill that would up the tax on diesel fuel in order to help create billions of dollars for infrastructure projects – as stated in an April 11 report from DC Velocity.

The measure would increase the excise tax on diesel fuel by 20 cents on the gallon over the next 10 years, and help to fund a $52 billion infrastructure improvement initiative. The diesel, which would increase from 9 – 13 percent in this period, generating around $10.8 billion in revenue, is combined with a 12-cent gasoline tax increase – creating roughly $24.4 billion and another $16.3 billion coming from a new annual vehicle fee.

The trucking industry in California has applauded the legislation, praising its aggressive solution to the state’s failing infrastructure.

“The transportation package is a win for all Californians, including the trucking industry, which has been significantly impacted by our deteriorating roads and infrastructure,” said Shawn Yadon, CEO of the California Trucking Association. “The funding options provided in this measure will give our state a prudent and reliable revenue source to fix our roads and keep goods moving in and through California.”

The demand from shippers, carriers, and other industry representatives to hike gas taxes nationwide has gone largely unheeded in Washington. Federal levies on gasoline and diesel have not been raised since 1993, suffering what is estimated to be a 40 percent loss in purchasing value. Consequently, the Highway Trust Fund, almost entirely financed by motor fuels taxes, has languished in the past decade. Yet, faced with a divisive political atmosphere and staunchly anti-tax Republican congress, proposals like the bill in California are highly unlikely in D.C.

Read more from DC Velocity here.

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