LAS VEGAS — California gasoline tax revenue could rise from its current $1.10 per gallon tax, according to a new report from the U.S. Treasury Department.
The revenue could increase from about $400 million to $5.6 billion over the next two years, according the report released Tuesday.
The tax is one of the top three revenue sources in California, and the state’s economy is growing.
The state has the highest percentage of households that pay no income tax in the country.
“With the additional $400 billion, we are going to see a real increase in the economy,” said state Treasurer John Chiang, who authored the report with Treasury Secretary Jacob Lew.
But the report does not give a number on how much the revenue could grow.
It also does not specify how much more revenue could be collected by the state through the fuel-efficient vehicle tax.
That’s what the legislature is considering.
More:The tax increase is part of a package of tax increases that are expected to be enacted in the coming weeks.
The governor has proposed raising the tax by up to 7 cents per gallon to help pay for the expansion of the state transportation department.
The governor has said the fuel tax increase could be a way to reduce California’s budget deficits.
He has said he’s considering whether to add a surcharge to vehicle registration fees, which are collected by people who buy or lease vehicles.
Chiang said he expects to have a detailed plan by the end of this month.