Several California tax and fee changes are set to take effect July 1, 2026, the start of the state’s new fiscal year.

For most Ripon residents, the change that will be most noticeable is a higher state tax on gasoline and diesel fuel. Other changes will affect tobacco products, tobacco retailers and petroleum suppliers.

While no new City of Ripon sales tax increase has been announced for July 1, residents in Ripon and the surrounding 95366 area will still be affected by the statewide fuel-tax changes at the pump.

California gasoline tax rises 2.2 cents per gallon

Beginning July 1, California’s state excise tax on gasoline will increase from 61.2 cents per gallon to 63.4 cents per gallon.

That is a 2.2-cent increase on every gallon of gasoline purchased in California.

For a driver filling a 15-gallon tank, the direct increase equals about 33 cents per fill-up. A 20-gallon fill-up would carry about 44 cents more in state gasoline tax than it did before July 1.

The increase is part of California’s annual adjustment tied to changes in the California Consumer Price Index. State law requires the rate to be adjusted each July 1. Fuel-tax revenue is directed to transportation accounts used for road maintenance, bridge safety and congestion-relief projects.

The tax increase does not mean gas station prices will rise by exactly 2.2 cents per gallon. Fuel prices are also affected by crude-oil costs, refinery supply, transportation expenses, station pricing and other market conditions. However, the higher excise tax is a direct additional cost built into every gallon of gasoline sold in the state.

Diesel fuel tax also increases

California’s diesel fuel tax will also rise July 1, increasing from 46.6 cents per gallon to 48.2 cents per gallon.

That is a 1.6-cent increase per gallon.

The diesel increase directly affects people and businesses that purchase diesel fuel, including truck drivers, delivery companies, farmers, construction businesses and others who operate diesel-powered vehicles or equipment.

For the general public, diesel costs can also affect the broader economy because diesel is widely used to move goods, supplies and food. The tax change alone does not determine retail prices, but it adds to the operating costs faced by businesses that rely on diesel.

Tobacco-products tax will decrease, but retailer license fees rise

Not every July 1 tax change is an increase.

California’s excise tax on tobacco products other than cigarettes will decrease from 54.27% of wholesale cost to 51.08% of wholesale cost beginning July 1.

The change applies to products such as cigars, chewing tobacco, snuff and many nicotine products, including certain electronic-cigarette and vape products. The tax is paid by distributors, and retail prices can vary depending on wholesale costs and individual store pricing.

The state cigarette tax itself is not changing. California’s cigarette tax will remain $2.87 per pack of 20 cigarettes.

However, businesses that sell cigarettes and tobacco products will see a significant licensing cost increase. Starting July 1, the state fee for a new or renewed Cigarette and Tobacco Products Retailer License will increase from $265 to $450 per retail location.

The higher fee applies to applications and renewals filed on or after July 1. While it is a business license fee rather than a direct tax on a customer’s purchase, it creates an additional cost for local convenience stores, smoke shops and other retailers that sell tobacco products.

Oil-spill prevention fee increases slightly

California’s Oil Spill Prevention and Administration fee will also increase July 1, rising from 9.6 cents per barrel to 9.9 cents per barrel of crude oil, petroleum products and renewable fuel.

This fee is paid at the petroleum-supply level and is intended to support the state’s oil-spill prevention and administration programs.

The increase equals three-tenths of one cent per barrel. It is much smaller than the gasoline and diesel excise-tax changes and is not expected to appear as a separate line item at the pump. However, it is another cost affecting the petroleum supply chain.

No new Ripon sales-tax increase found for July 1

Our review of state and local tax information did not identify a new City of Ripon or San Joaquin County sales-tax increase that takes effect July 1.

Ripon’s combined sales and use tax rate is currently listed at 7.75%. That rate includes California’s statewide sales tax and local county taxes. Residents making taxable purchases in Ripon should not see a new local sales-tax percentage added July 1 based on the currently posted state rate information.

Tax rates can depend on the exact location where an item is purchased or delivered, particularly for online purchases and addresses near jurisdiction boundaries. Residents and businesses can verify a specific address through the California Department of Tax and Fee Administration’s rate lookup tool.

Ripon Fire District assessment is separate and still pending

The statewide tax changes taking effect July 1 are separate from the Ripon Consolidated Fire District’s proposed Fire Protection and Emergency Response Services Benefit Assessment.

Property owners within the Fire District are currently being asked to return ballots on that proposal. If approved through the property-owner ballot process, the assessment would be placed on the San Joaquin County property tax roll for fiscal year 2026-27.

According to the Fire District’s Engineer’s Report, the assessment is intended to help fund firefighter staffing, training, equipment needs and the staffing of a second station at 1705 North Ripon Road, which is currently unstaffed.

The proposed base assessment rate is $249.98 per Single Family Equivalent, although actual assessment amounts may vary by parcel, property type and other factors used in the District’s formula.

Because the measure remains subject to the ballot process, it is not a July 1 tax increase. However, it is another local cost proposal that Ripon property owners may be considering during the same period.

What Ripon residents should expect

Beginning July 1, the most immediate statewide impact for Ripon residents will be the 2.2-cent-per-gallon gasoline tax increase and the 1.6-cent-per-gallon diesel tax increase.

Tobacco consumers may see prices change depending on product type and retailer pricing, while businesses selling tobacco products will face a higher state licensing fee when applying for or renewing their licenses.

For now, there is no announced July 1 local sales-tax increase for Ripon. The Fire District assessment remains a separate local proposal that will be decided through the ongoing property-owner ballot process.