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BOE Member George Runner

California May Cut Gas Tax

Did you know Californians overpaid gas tax last year due to a bizarre and complex formula that few people understand?

Under current law, the Board of Equalization is required to annually adjust the state excise tax rates for both motor vehicle and diesel fuel, so the amount of tax revenue collected each year is equal to what would have been collected prior to the fuel tax swap.

At our February 23, 2016 meeting in Culver City, the Board of Equalization will consider a staff proposal to lower the state excise tax rate for gasoline by 2.2 cents for the 2016-17 fiscal year. If approved, the new lower rate of 27.8 cents per gallon will take effect July 1. The current excise tax rate is 30 cents per gallon.

When gas prices fall we must lower the rate to ensure fairness. The cut will be a welcome and much-deserved tax break for Californians, who currently pay more taxes at the pump than drivers in other states.