(September 7, 2011) A California Chamber of Commerce-opposed bill that gives metropolitan planning organizations (MPOs) the authority to initiate county elections to raise gasoline taxes in unlimited amounts with the approval of only a simple majority of local voters is likely to be considered by the Assembly Revenue and Taxation Committee this week.
SB 791 (Steinberg; D-Sacramento) provides authority to metropolitan planning agencies to impose a special tax, mischaracterized in the bill as a fee, on the sale of motor and diesel fuel by only a majority vote of the people, instead of the constitutionally required two-thirds.
The bill, which previously dealt with another unrelated topic, was amended into its current form on August 25 and has generated a growing list of opponents that include businesses, consumers and taxpayers.
Despite the bill’s characterization of this type of levy as a “charge,” the fact is SB 791 would provide authority to MPOs to impose a special local gasoline tax for the specific purpose of transportation improvements through a majority vote, instead of the two-thirds vote requirement.
Additionally, increasing motor fuel taxes at the height of the state’s most serious recession since the Great Depression would cause severe financial harm to businesses, taxpayers and consumers at a time they can least afford it. The pain of SB 791 would not stop at the pump, but would be felt throughout the economy as farmers, manufacturers and service providers pass along the increased fuel costs to their customers in the form of higher prices for everyday necessities such as food products.
Higher fuel costs make it more difficult for businesses to produce and deliver their products and services, for parents to drive to work and take their children to school, and for seniors to visit their medical care providers. The administration, defense and enforcement of SB 791 would be unprecedented, costly and complicated.
California already has the highest gasoline taxes in the country. SB 791 would increase that gap significantly. With 12 percent unemployment, and with the state suffering from unacceptably high job losses, business flight and home foreclosures, now is not the time to impose the added burden of uncapped gasoline taxes on the state’s economy and place California businesses at an even worse competitive disadvantage than they currently are.
Action Needed
SB 791 is anticipated to be heard in Assembly Revenue and Taxation; no hearing date has been set. Contact your Assembly members and urge them to oppose SB 971.
Staff Contact: Jennifer Barrera