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Gas Tax Drop

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Sacramento, CA – Motorists will soon pay a little less a gallon at the pumps.

Today, the California State Board of Equalization (BOE) voted unanimously to cut the state excise tax from 36 to 30 cents a gallon due to lower gas prices.  The original proposal called for a seven and a half cent tax cut.  State Senator and BOE Vice-chair George Runner states, while the move is still good news for overtaxed Californians, the cut may reduce funding for local road projects.  “The Board’s cut won’t even fully offset the cost of a new ‘hidden gas tax’ that took effect January 1 to help fund high speed rail and other so-called anti-global warming efforts,” he adds.

State law requires the Board to set the tax rate by March 1st of each year, using a formula called the “fuel tax swap.” More information and a video explanation of this process is available by clicking the link in the upper left hand box.  If adopted, the 30-cent excise tax will become effective July 1st and last through June 30, 2016.  As other factors affect gas prices, it remains to be seen whether motorists will see much of a difference at the pump.

  • Stock Photo Gas pump