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California Set for Gas-Tax Hike as Newsom Fails to Win Freeze

April 27, 2022, 4:14 PM

California is set for an automatic increase in its fuel tax July 1 after Governor Gavin Newsom failed to convince lawmakers to pause the hike, part of his plan to bring relief to residents in the state with the most expensive gasoline.

Negotiations continue on a broader proposal for rebates sent directly to vehicle owners.

Democratic legislative leaders, who had to act this week to delay the annual inflation-indexed tax increase, said in a statement that they saw “pitfalls” in performing a temporary act that would result in limited relief and fewer funds for road repair. The pause was expected ...