Voter Approval for Increases in Gas and Car Tax
Proposition 6 is a constitutional amendment ballot initiative that has qualified for the November 2018 General Election. Prop 6 requires that the statewide electorate approve any gas, diesel, or vehicle related tax or fee increase. Since the initiative has a retroactive effective date of January 1, 2017, it would repeal the revenue increases included in SB 1 – the Road Repair and Accountability Act of 2017 and potentially negatively impact other long-standing transportation funds.
SB 1 will provide approximately $5 billion annually in revenue for local streets and roads, state highways, and public transportation through the imposition of increased fuel and diesel taxes and a new transportation improvement fee and zero emissions vehicle fee. From these revenue sources, at full implementation (the various taxes and fees are phased in over a number of years), approximately $1.5 billion per year in new funding will be allocated by formula for county roads and city streets. Counties and cities have been receiving monthly apportionments since January 2018 and have already identified over 6,500 projects for funding on the local street and road system.
Proposition 69 – the constitutional protection measure that accompanied the passage of SB 1 – was overwhelming approved by voters in June 2018 (81.3 percent). Prop 69 ensures that the revenues from SB 1 that were not already protected by the constitution are dedicated and protected for transportation purposes.
CSAC opposes Prop 6 given the significant negative impacts the initiative would have on the ability of counties to repair and maintain in a safe condition local streets, roads, bridges and other critical local transportation infrastructure.