You may need to budget more money for your summer vacation.
Come July 1st, the tax you pay on a gallon of gas is going up.
We've all been feeling the pain in our wallets, as gas prices in California continue to climb. Gasbuddy.com says the average price right now is $4.23 a gallon.
On Thursday, the State Board of Equalization voted to raise the excise tax on gas by three-and-a-half cents, to 39-and-a-half cents a gallon.
Three Democrats on the board voted for the raise, while two Republicans opposed it.
The move was made due to a switch in the state's gas taxation system in 2010. Sales taxes were lowered, but by law, overall taxes have to remain the same as they would have using the old system.
The board is mandated to adjust the rate each year by March 1st. So, when gasoline sales are down the excise tax has to be raised.
"The people who have to deal with this bad law are everyday people who are having a hard time with their money stretching to the end of the month. This is no time to be penalizing them again for fuel-efficient cars and traveling less and an economy that is not rebounding the way it should," said Assemblyman Jim Patterson, R-Fresno.
The excise tax on diesel will remain at ten cents a gallon.
The revenue from the tax goes to maintaining roads, bridges and transportation infrastructure, as mandated by the passage of Proposition 42 back in 2002.