Farm Groups Opposing State Gas Tax Proposal

 

Agriculture groups in California are banding together in opposition to a tax proposal that would raise taxes on gas and increase vehicle fees.

A California Senate bill seeks the increases to pay for road repairs.

However, a coalition of agriculture groups, including the Western Growers Association and several state commodity and livestock groups, say the tax will be a burden on struggling farming operations without greatly expanding the capacity of roads to transport goods.

The coalition sent a letter to lawmakers explaining that the proposal will dramatically increase transportation costs for farmers, ranchers, food processors and agricultural suppliers, according to the LA Times.

Regarding vehicle fees, the letter states: “Unlike the diesel and gasoline tax, increased input costs cannot be passed to consumers by farmers and ranchers and as such must be absorbed with no added value.”