Skip to Content
Streetsblog California home
Streetsblog California home
Log In
Transportation Funding

Reports Quantify Benefits of Gas Tax Investments for California, Regions

The recently passed gas tax increase, S.B. 1, will add an annual $18.3 billion to the California economy, according to an analysis released by the American Road and Transportation Builder Association (ARTBA).

ARTBA, of course, has a stake in the outcome of the threatened repeal of S.B. 1, since many of the jobs created by the measure are going to its members. Still, the reports it commissioned on the economic impacts of the gas tax increase are a compelling argument in favor of investing in infrastructure.

The original report, available here, was released in February, and yesterday ARTBA released several new reports focused on specific regions of the state. Its analysis evaluates the economic benefits to individuals and the state, including new jobs, savings on vehicle repairs, and cost savings from improved safety conditions. It also includes increased economic activity from purchasing materials, in-state spending on goods and services by those with new jobs and new business, and additional income and sales tax revenue to the state.

S.B. 1 is expected to bring in an average of $5.2 billion annually over the next decade in increased revenue from gas taxes and fees, so the report's estimate of $18.3 billion annually in direct and indirect benefits to the state's economy and its residents is a pretty big return.

The report estimates there will be new jobs in many sectors, not just transportation and construction, including agriculture, mining, utilities, manufacturing, trade, information, real estate, health care, and others. The report also outlines other less easily quantified benefits, such as quality of life, safety and comfort levels for all road users, and improvements in cities and towns.

The report goes into detail about why and how these investments improve overall state economic health, including increasing access to goods and services, reducing production costs, increased efficiencies, better emergency management, fostering innovation, and the like. Benefits to individuals include household savings from reduced vehicle maintenance and better access to alternative transportation, as well as better transit travel times and reliability.

The new regional reports put numbers on benefits specific to Orange, Los Angeles, San Diego and Imperial counties, the Inland Empire, the San Francisco Bay Area, and the San Joaquin Valley.

That's not a bad return on an additional twelve cents a gallon and a realistic vehicle registration fee. And no, the gas tax is not the only--or even the main--reason gas is more expensive in California than elsewhere.

Stay in touch

Sign up for our free newsletter

More from Streetsblog California

Metro Ridership Snapshot Suggests Added Service, Bus Lanes, and Walk/Bike Projects Increase Riders

Overall Metro ridership grew 7.5 percent year-over-year, but some rail and bus lines grew 10-20+ percent. SBLA explores factors that influenced outsized system-leading ridership increases.

November 8, 2024

Safe-Streets Politicians Gain in the Bay Area

Against the national news of suck, here's a bit more good news around the Bay Area

November 8, 2024

Friday Video: Would Our Cities Be Better Off Without Public Hearings?

Is the way America does public hearings making our cities more democratic, or obstructing the kinds of human-centered projects we need most?

November 8, 2024

Friday’s Headlines

It's climate change; Walk in L.A.; Silicon Valley ridership has recovered; LCFS debate still focusing on gas prices; More

November 8, 2024

Eyes on the Street: 57/60 Freeway Confluence Construction in Progress

New off-ramps have begun to sprout out of the dirt, and widening surface streets are going through the growing pains of construction closures

November 7, 2024
See all posts