Gas tax could be cut

Gas station, California, wikimediaGolden State drivers might soon enjoy a little tax relief at the pump. The Board of Equalizati0n announced:

Sacramento – The California State Board of Equalization (BOE) will consider lowering the excise tax rate for gasoline by $0.075 for Fiscal Year (FY) 2015-16 during its February 24, 2015 meeting in Culver City.

Since 2010, the “fuel tax swap” law has required the Board to adjust this tax rate by March 1st of each year. If adopted, between July 1, 2015 and June 30, 2016, the excise tax rate on gasoline will be $0.285 per gallon. The current excise tax rate of $0.36 is in effect until June 30, 2015.

The excise tax on gasoline pays for public road improvements and mass transit. In FY 13-14, the BOE collected nearly $5.8 billion for the Motor Vehicle Fuel Account, Transportation Tax Fund. Sales tax funds a variety of state and local programs.

If the tax cut happens, it could offset the cap-and-tax trade increase that went into effect on Jan. 1.

Although there were warnings the cap-and-trade tax increase could be as much as 75 cents a gallon, it’s turning out to be more like 10 cents.

So if the BOE follows through, it will counteract most of that.

As of today, according to GasBuddy.com, California has the country’s second highest average gas price, at $2.80 per gallon. Highest is Hawaii, at $3.02.

Lowest is Utah, at $1.92, followed by Idaho, $1.93; Montana, $1.97; and Wyoming, $1.99 — all Western neighbors. Although Nevada is fairly high, at $2.44.

Big competitor Texas is $2.10.

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  1. bob
    bob 18 February, 2015, 07:22

    Colliefornia (as Anode calls it) cutting a tax?

    John, you are so funny.

    I doubt this happens but if it does don’t forget that the 10 cent cap-n-trade tax is just the beginning. It goes up EVERY year. Whatever BOE does I guarantee you the total Colliefornia tax on gas will be higher next year.

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John Seiler

John Seiler

John Seiler has been writing about California for 25 years. That includes 22 years as an editorial writer for the Orange County Register and two years for CalWatchDog.com, where he is managing editor. He attended the University of Michigan and graduated from Hillsdale College. He was a Russian linguist in U.S. Army military intelligence from 1978 to 1982. He was an editor and writer for Phillips Publishing Company from 1983 to 1986. He has written for Policy Review, Chronicles, LewRockwell.com, Flash Report and numerous other publications. His email: [email protected]

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