WASHINGTON – Today, Congressman David G. Valadao (CA-22) led the entire California Republican congressional delegation in a letter to Governor Gavin Newsom opposing the impending gas tax increase of 8% on July 1, 2023. The lawmakers also call on the governor to extend the partial diesel sales tax exemption, which is set to expire this September.

In the letter, the members highlight the already high cost of living in California and the potential for gas tax increases to contribute to the troubling trend of people leaving the state in droves:

“This [population] loss can be attributed to the substantial number of individuals who have chosen to leave the state in search of more affordable living conditions. Increasing the gas tax may worsen this trend, contributing to the exodus of taxpaying California residents,” the lawmakers wrote.

Congressman Valadao was joined in the letter by House Speaker Kevin McCarthy (CA-20), Reps. Ken Calvert (CA-41), Young Kim (CA-40), Michelle Steel (CA-45), Darrell Issa (CA-48), Tom McClintock (CA-05), John Duarte (CA-13), Kevin Kiley (CA-03), Jay Obernolte (CA-23), Mike Garcia (CA-27), and Doug LaMalfa (CA-01).

Congressman Valadao led a similar effort to suspend the gas tax last year, when Californians were paying around $6.00 per gallon. California has the second highest state gas tax in the nation, and the average price of gas in California is $1.28 higher than the national average.

Read the full letter here or below.

Dear Governor Newsom,

We express strong opposition to the proposed increase in California’s state excise tax on gasoline, scheduled to take effect on July 1, 2023. This tax increase places an unnecessary burden on the people of California who are already grappling with the high cost of living in our state.

Last year, we urged you to consider a full and immediate suspension of the state gas tax, given the challenges faced by Californians who had to choose between filling their gas tanks and meeting their families' needs. Unfortunately, our concerns were not addressed, and the situation has since worsened. Californians continue to be confronted with exorbitant gasoline prices, ranking among the highest in the country, and the rapidly increasing cost of basic necessities, such as housing, food, energy, and transportation. On July 1, 2023, the gas tax will increase another 8 percent.

It is important to consider the potential repercussions of increasing the gas tax, including the population's desire to remain in the state. California recently experienced a significant shift in its representation in the House of Representatives, losing a seat for the first time in its history. This loss can be attributed to the substantial number of individuals who have chosen to leave the state in search of more affordable living conditions. Increasing the gas tax may worsen this trend, contributing to the exodus of taxpaying California residents.

While we were pleased that a partial diesel sales tax exemption was included in last year’s budget, this exemption is unfortunately set to expire this September. This tax relief helped reduce commercial transportation costs and lower the price of consumer goods. The new budget that you have set forth does not extend this much-needed relief and we are concerned that this too will exacerbate the economic challenges facing California families.