Dateline Sacramento — State Board of Equalization Vice Chair George Runner announced that, effective tomorrow, California’s gasoline excise tax will decrease by six cents a gallon, dropping from 36 cents to 30 cents.
“This is welcome news for overtaxed Californians who had essentially given government an interest-free cash advance,” Mr. Runner said. “The lower rate will help correct the overcollection of tax brought about by lower gas prices.”
State law requires the Board of Equalization to annually adjust the state excise tax rate on gasoline by March 1 of each year. The Board approved the six cent tax rate reduction in February.
“Californians should know, however, that this cut won’t fully offset the cost of the ‘hidden gas tax,’” Mr. Runner said. “The tax went into effect this year to fund Gov. Brown’s high speed rail project and other so-called anti-global warming efforts.”
Even with the lower rate, Californians will continue to pay some of the highest gas taxes in the nation. According to the latest information from GasBuddy.com, California also has the highest average gas price in the nation, beating both Alaska and Hawaii.
The new 30-cent per gallon tax rate will remain in effect until next June 30.
Mr. Runner may be contacted at www.boe.ca.gov/Runner
Mr. Grant may be contacted at micah.grant@boe.ca.gov
