The state Board of Equalization today approved lowering the statewide excise tax rate on gasoline by 3.5 cents.
The 5-0 vote at the BOE’s meeting in Culver City means that the tax will decrease from 39.5 cents to 36 cents effective July 1, and remain in place until June 30, 2015.
Under guidelines of a complicated gas taxes formula signed by former Gov. Arnold Schwarzenegger in 2010, BOE annually adjusts the state gas excise tax rate by March 1 of each year. BOE is anticipating relatively stable gas prices over the next fiscal year, and in-state gas consumption has remained flat in recent years; both factors are considered by BOE when weighing excise tax adjustments.
Historically, the swap has had little or no effect on at-the-pump gas prices. When gas prices do go up, consumers pay a corresponding higher amount in sales tax. The statewide baseline sales tax on gas is 2.25 percent, and additional taxes vary by jurisdiction.
Gasoline sales tax revenue funds local government programs; the state excise tax on gasoline funds highway and mass transit projects throughout California.
Call The Bee’s Mark Glover, (916) 321-1184.