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The cost of living in California makes the gas taxes irrelevant. Let's compare them. I've picked Vallejo, CA versus Wheeling, IL. Both are about 30 miles from the nearest major city (San Francisco / Chicago). Both are pretty suburban.

Gas in Vallejo is about $4.09 / gal, versus $3.49 (according to GasBuddy.com).

The average house in Vallejo is about $539,000, versus Wheeling at about $307,000 (according to Zillow)

The "minimum annual income to live comfortably" in Vallejo is $96,120, versus $46,080 in Wheeling (according to BestPlaces.net). Side note: crime in Wheeling is significantly lower than Vallejo.

These places were chosen essentially at random, but meant to be comparable, and the differences are pretty stark. Houses are slightly less than twice as expensive in Vallejo, but the cost of living is more than twice as expensive by a comfortable margin. In terms of living costs, for them to be comparable, Vallejo's gas would need to be a little over $7 / gal, just for you to start seeing meaningful effects.

TL;DR - California's gas taxes are basically meaningless when it comes to guiding buyers' decisions.



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