Truckers to Calif.: Don’t Raise Taxes

Trucking and warehouse executives in California urged the state tax commission to refrain from raising taxes on diesel fuel and gasoline.

The tax body, also known as the Commission on the 21st Century Economy, is considering remedies for what it terms California's boom and bust revenue cycles. One measure under consideration is a proposal to double the state excise tax on diesel fuel and gasoline.

At a rally Tuesday in Rancho Dominguez, Calif., the Western States Goods Movement Alliance representing motor carriers and warehouse operators said doubling the California diesel tax would cripple the state's struggling goods movement sector.

"California already has the highest taxes on gas and diesel fuel in the country," said Fred Johring, president of Golden State Logistics. California's diesel tax at present is 18 cents per gallon.

Joshua Owen, president of Ability/Tri-Modal, noted that the Carson, Calif., company had to lay off 72 workers this year because of freight diversion and the high cost of doing business in California.

"If the tax commission goes through with this multi-billion dollar fuel tax increase, we might become one of the state's many business and employee casualties," Owen said.

Motor carriers serving the ports of Los Angeles and Long Beach are struggling to finance new trucks as mandated by the ports' clean-truck program, while at the same time dealing with freight volumes that are down as much as 30 percent, said Rick Lorenzen, president of Price Transfer.

Trucking and warehouse executives plan to address the next meeting of the tax commission at 11 a.m. Thursday at the UCLA James West Alumni Center.

Contact Bill Mongelluzzo at bmongelluzzo@joc.com.