The state's gas tax will increase by a little more than a penny for regular gasoline and just under one cent for diesel. The California Department of Tax and Fee Administration said the new gas tax will go from 59.6 cents to 61.2 cents per gallon, and diesel will increase from 45.4 cents to 46.6 cents per gallon.
Changes to a low-carbon fuel standard is also expected to increase gas prices, but the question is how soon could Californians see the increase?
"Based on the timing of this happening on July 1, the price of oil is actually down over $10 a barrel because of what's happening in the Middle East," said Gas Buddy's Patrick De Haan. "So, this may not necessarily drive up gas prices on July 1 itself. You will likely be paying more because of the excise tax, but you may actually notice your gas prices could fall in the next week."
Altogether, Californians now pay nearly 90 cents per gallon just in taxes and fees.
The gas price average for the Fourth of July weekend in California is $4.59 a gallon.
Other California laws taking effect July 1
Aside from the increase in the gas tax, several other state laws are also taking effect Tuesday. That includes new wages for healthcare workers, with some of them earning as much as $24 an hour.
If you're renting an Airbnb or other short-term rental, a law now requires the property owner to disclose cleaning tasks for guests in order to avoid a penalty fee.
Another law will now make it easier to cancel your unwanted subscriptions by requiring one or more ways to notify you before your subscriptions automatically renew.
In addition, restaurants must provide lids for alcoholic beverages upon a customer's request. The new law aims to prevent spiked drinks.
Another law ensures safety protections for household domestic workers.