State Board of Equalization member George Runner said today, just hours after a unanimous vote, that even though the Board will cut the gasoline excise tax by a smaller amount than planned, “this still is good news for overtaxed Californians.”
The Board voted 5-0 to cut the tax by 6 cents, from 36 to 30 cents, effective July 1.
“Californians currently pay both higher gas prices and higher taxes than residents of other states,” Mr. Runner said. “Today’s vote stems from a confusing and complicated formula known as the ‘gas tax swap.’”
Mr. Runner went on to explain that the Legislature enacted the formula some years ago to redirect more than a billion dollars of transportation funding elsewhere.
Under the gas tax swap law, the Board of Equalization must adjust the gas tax rate every year to guard against over-collection of tax.
“State revenues from fuel taxes reached a record $8.7 billion last fiscal year,” Mr. Runner said.
“This vote will help correct the overcollection of tax that is resulting from lower gas prices.”
Californians still are likely to be No. 1 in taxation even after the cut.
“The Board’s cut won’t even fully offset the cost of a new ‘hidden gas tax’ that took effect Jan. 1,” Mr. Runner said.
The latest tax’s purpose is to help fund high speed rail and “so-called anti-global warming efforts.
“Instead of raising taxes, lawmakers ought to use all of the dollars California drivers already pay at the pump, including the new hidden tax dollars, to improve our roads and eliminate congestion. In addition, we ought to invest more General Fund dollars in transportation as well.”
For more information on Mr. Runner, serving his second term, see www.boe.ca.gov/Runner.
Mr. Duran may be contacted at david.duran@ca.boe.gov
