by John Seiler | February 17, 2015 11:57 am
Golden 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.
Source URL: https://calwatchdog.com/2015/02/17/gas-tax-could-be-cut/
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