PROPOSITION 111 STATE GAS TAX

Many state programs are funded by the Proposition 111 state gas tax of five cents ($.05) per gallon that was effective on August 1, 1990 and a one cent ($.01) per gallon additional increase that was effective on January 1, for each of the next four years (1991 to 1994) for a total of nine cents ($.09) increase. The measure enacted a fifty-five percent (55%) increase in truck weight fees for commercial trucks over 4,000 pounds, effective August 1, 1990, and another ten percent (10%) increase effective January 1, 1995. Proposition 111 also exempts from the Gann expenditure limit the revenues generated by these increases so that the new funding can be spent for congestion relief and mass transit. The term Gann is for former Assemblyman Paul Gann, who was an anti-tax crusader.