The decision will result in a $0.12 per gallon increase for gasoline taxes over the next decade.
California has finalized legislation that will bring a significant hike in fuel taxes to raise funds for road and bridge repairs.
The bill will increase the base excise tax by $0.12 per gallon for gasoline and $0.20 per gallon for diesel, while a $100 annual fee has been introduced for electric vehicles. The fuel taxes go into effect on November 1, but EV owners have until 2020 before they face the yearly mandatory payout.
The increased taxes are expected to raise $5.2 billion each year over the next decade. California Governor Jerry Brown claims the taxes and fees equate to an average of just $10 per month for each motorist in the state.
State officials say the package includes "strict accountability provisions" to ensure the funds can only be spent on transportation projects. Some of the cash will also help pay for public transportation.
"The new funding will allow Caltrans to make major repairs to California's transportation infrastructure including 17,000 miles of pavement, 500 bridges and 55,000 culverts over the next ten years," the governor's office says. "The package will also fund huge investments in repairing local streets and roads."