California gas tax drops but pump price may not
CULVER CITY, Calif. (AP) -- A California gas tax is dropping but that doesn't mean consumers will see a dip at the pump.
The state Board of Equalization on Tuesday approved lowering the excise tax rate by 3.5 cents per gallon after raising it last year.
The tax will drop from 39.5 cents to 36 cents for the fiscal year that begins on July 1 -- just as the summer driving season kicks in.
Board Chairman Jerome E. Horton says he hopes gas providers will pass on the reduction to consumers -- who'll still pay the second-highest gas tax rate in the nation.
The excise tax funds highway and mass transit projects. The board adjusts it annually based on a formula that includes the projected price of gas in the coming fiscal year.