Board Of Equalization Drops Gasoline Excise Tax By 2.2 Cents

CULVER CITY (CBSLA.com) — The state Board of Equalization voted Tuesday to lower the gasoline excise tax rate by 2.2 cents per gallon.

With the 3-2 vote, the excise tax rate on gas will be 27.8 cents per gallon from July 1 through June 30, 2017. The current excise tax rate of 30 cents per gallon will remain in effect until June 30.

"Today's vote was simply a matter of fairness," said BOE Vice Chair George Runner. "Californians overpaid gas tax last year because of a bizarre formula known as the 'gas tax swap' passed by lawmakers in 2010. Lowering the rate is the right thing to do, and I'm sure Californians will welcome this reduction.

"Unfortunately, even after the cut goes into effect, Californians will still pay some of the highest taxes in the nation," he said. "What we need now is for lawmakers to simplify our tax laws and look for ways to provide value for the money that Californians send to government."

In the 2014-2015 fiscal year, nearly $5.4 billion was collected in excise tax for the state's Motor Vehicle Fuel Account, which helps to pay for highways, roads and other public transportation projects.

Drivers in California pay two different types of state taxes on gasoline. Sales tax, which is a percentage of the price, helps to fund a variety of state and local road programs.  Per-gallon excise tax ensures motorists will not pay more or less than the issued rate over a three-year period.

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