Typically, people mean the state excise tax on gasoline because this is the primary source of state funding for highways and roads. However, federal excise taxes and state and local sales taxes also apply to gasoline in California. (Various state, federal, and local taxes are also placed on diesel fuel.)

What is fuel excise spent on?

Fuel excise is used to help pay for our roads.

Like almost all federal taxes, fuel excise goes into the Government's general revenue, which is then drawn upon to fund our transport infrastructure. It is the contribution that you, as a motorist, make to the development and maintenance of our road transport system.

Where does money for roads come from?

Most spending from the Highway Trust Fund for highway and mass transit programs is through federal grants to state and local governments. The federal government accounts for about one-quarter of all public spending on roads and highways, with the remaining three-quarters financed by state and local governments.