California gas tax welcomes out-of-state competition
REDDING, Calif. - The California gas tax is affecting local business and welcoming unwanted competition for distributors.
After more than a week since the gas tax bill went into effect, every durable good that's delivered in California by a truck is now more expensive with the reason being, the increase on operating costs. Gas jumped 12 cents a gallon for Californians and 20 cents a gallon for diesel. On top of the excise gas increase, big rig companies are also paying an additional sale tax that has increased four percent in cost since last month, before the gas tax.
A local petroleum distribution company, Cross Petroleum, operates along interstate 5 up to the Oregon border. Owner Jimm Cross says out-of-state competition is a concern now more than ever.
"Unlike the price in southern Oregon. Their prices are lower, they don't have sales tax. People in Siskiyou County shop in Oregon already, you know Costco, things like that. So we might feel an impact of people buying more gas up there," said Jimm.
The biggest impact for his company is how the cost of fuel affects his customers as well, which isn't a general understanding quite yet.
For example, when you go to the store and by a gallon of milk, it had to be transported on some sort of big rig, which is paying a higher price for distribution after getting their fuel from a company that is also paying tax on that additional amount.
The rise might also impact tourism in the Northstate.
"It just tightens up the incremental money people have to travel, to take their short trips from the bay area to Redding to go to the lake or hike Mount Shasta," explained Cross.
Tops Market in Redding said the price of produce is actually down this year so customers shouldn't have to brace themselves for a hike in produce and other imported goods before the holidays. Whatever the rise may be, the market will still do it's best to keep the cost customer friendly.