As of Nov. 1, drivers will now see increased diesel prices at the pump in California.
The excise tax in diesel was previously 16 cents per gallon, which has now been increased to 36 cents. The sales tax rate on diesel has also been increased from 9 percent to 13 percent. It’s expected that the rate hikes on diesel will generate 10.8 billion, while the increase on gasoline tax rates will generate 24.4 billion. Gasoline also saw a 12 cent tax increase go in to effect on the first. Money generated from gasoline and diesel taxes is used to fund public transpiration projects.
California is not alone in raising tax rates on fuel in 2017. Indiana, Montana, New Jersey, South Carolina, Tennessee and West Virginia have all done the same.