Lower gasoline excise tax rate takes effect statewide on Wednesday

The statewide excise tax rate on gasoline will fall by 6 cents, effective Wednesday.

The change was approved in February by the state Board of Equalization. The decrease from 36 cents to 30 cents per gallon will remain in place through June 30, 2016.

Under guidelines of a complicated gas tax formula signed in 2010 by Gov. Arnold Schwarzenegger, the board annually adjusts the state’s gasoline excise tax rate by March 1 each year.

The “fuel tax swap” formula allows the state to use gas tax revenue for debt repayment.

Historically, the swap has had little or no effect on at-the-pump gas prices.

The state excise tax funds statewide highway and mass-transit projects.

This story was originally published June 30, 2015 at 10:05 AM with the headline "Lower gasoline excise tax rate takes effect statewide on Wednesday."