[George Runner] – The state excise tax on gasoline will drop by six cents per gallon on Wednesday, July 1. This will lower the excise tax rate from 36 cents to 30 cents per gallon.
“The lower rate is welcome news for overtaxed Californians who pay higher gas costs than residents of nearly every other state,” said George Runner, vice chair of the California Board of Equalization. “It’s especially good timing for anyone hitting the roads this weekend.”
The Board approved the six cent tax rate reduction at its February 2015 meeting. The 30 cent per gallon rate will remain in effect until June 30, 2016.
While Californians will pay less in state excise tax on gasoline starting July 1st, this may not necessarily translate to lower overall prices at the pump. Other factors, such as world crude oil prices and supply and demand, also affect gasoline prices.
The BOE is tasked with annually adjusting the state excise tax rate on gasoline by March 1st of each year, after passage of 2010 laws known as the “fuel tax swap.” The new laws lowered the statewide sales tax rate on gasoline to 2.25 percent and raised the excise tax rate so that the total amount of tax revenue generated is equal to what would have been generated had the sales and use tax and excise rates remained unchanged.
The excise tax rate for the coming fiscal year is based on estimates of the projected average price of gasoline and number of gallons to be purchased. The difference between the projected and actual revenue collected from the prior fiscal year is then subtracted from the coming year projection to arrive at the upcoming rate.
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19 Comments
bet gas prices don’t drop
Of course not, the taxes are the least of it, the market is set by commodities market speculation. Everytime prices spike the government doesn’t make record profits the oil companies do. :-/
bet gas prices don’t drop
Of course not, the taxes are the least of it, the market is set by commodities market speculation. Everytime prices spike the government doesn’t make record profits the oil companies do. :-/
The government still makes a huge profit per gallon especially in CA. Gas stations make a few cents to stay competitive.
bet gas prices don’t drop
Of course not, the taxes are the least of it, the market is set by commodities market speculation. Everytime prices spike the government doesn’t make record profits the oil companies do. :-/
Road trip!!!
Road trip!!!
Road trip!!!
Is this Gas only? Or is Diesel included?
Great till the hidden gas tax kicks in. ” pay no attention to the man behind the curtain “
Really?
Diana Mojica
Barry just wants everyone to like him before he leaves office …!!!
took us a minute to figure out what you meant. This has nothing to do with the federal government. It’s state.
Wake up drones. 3,700 miles so far for $12 increase in utility bill.
#EV
#carpoolsticker
#nogastaxforme
That bmw model has surpassed the smart car in the ugly category.
That bmw model has surpassed the smart car in the ugly category.