Californians will now have to pay yet another tax as part of the state’s effort to fight global warming. Residents will now pay a global warming tax for buying gasoline on top of the already existing state gas tax.
The global warming tax on gas retailers is part of the state’s cap-and-trade program. But state officials are not calling the global warming charge a tax, instead they are saying it’s a fee paid by gas retailers when distributors load tanker trucks — even though the cost is passed onto consumers through the cost of fuel.
“They are not calling it a tax, and these guys (wholesalers) are adding it to the cost of the fuel, so you are paying a tax on a tax,” Max Castillo, who owns a convenience store and gas station, told the San Diego Union-Tribune. “California is the leader of the nation in paying taxes.”
The global warming tax adds about 10 cents a gallon to wholesale gas prices and 12 cents to diesel prices, reports the Union-Tribune. But with gas prices down about one dollar from last year, few residents have noticed the global warming fee being added to their gas bills.
Californians pay a whopping 77 cents per gallon extra on gasoline due to fees and taxes. The Union-Tribune reports that “[e]xcise taxes… cost consumers 36 cents per gallon for the state and 18.3 cents for the federal government.” This is in addition to the 2 cent underground storage tank fee and the “global warming fee, which is variable and could soar in the future, added about a dime this week.”
The global warming fee adds 2.25 percent to the full retail price of gasoline — which includes existing taxes and fees — meaning that once gas prices start to rise, Californians may take notice when their gas bills go way up.
The imposition of a global warming tax on fuel retailers comes as Democratic Gov. Jerry Brown announces plans to push the state to get 50 percent of its energy from green sources and move away from oil.
“If we have any chance at all of achieving that, California, as it does in many areas, must show the way. We must demonstrate that reducing carbon is compatible with an abundant economy and human well-being,” Brown said in a recent speech.
Brown wants to put the state on track to get 50 percent of its energy from green sources, like wind and solar, by 2030 and cut the state’s use of petroleum in half in the next 15 years. Brown also promised more rules to make buildings more energy-efficient.
“All of this is a very tall order. It means that we continue to transform our electrical grid, our transportation system and even our communities,” Brown said.
A tall order indeed, as California currently gets 96 percent of its transportation fuel from petroleum, according to state data. Brown and environmentalists hope that increasing taxes on gas and electricity will help achieve their goals.
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