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UPDATE: BOE reduces gasoline excise tax

Posted: February 25, 2014 11:26 a.m.
Updated: February 25, 2014 3:32 p.m.
 

The California State Board of Equalization voted unanimously Tuesday to reduce the state’s excise tax on gasoline by 3.5 cents per gallon, though that doesn’t necessarily mean relief to the wallets of California drivers.

The revision reduces the current excise tax of 39.5 cents per gallon downward to 36 cents per gallon. That new level will take effect on July 1 and last until June 30, 2015.

“Our vote today is good news for California taxpayers,” said Board of Equalization member George Runner, in a statement. “This much-needed tax relief will arrive as Californians are on the road for summer vacations.”

Savings in the excise tax rate do not necessarily translate to lower prices at the pump, however.

“Historical data indicates that this legislation requiring the adjustment does not have an impact on overall gas prices,” said board Chairman Jerome Horton in a statement released earlier this month. “However, it would be nice if this decrease in excise tax would result in a corresponding decrease in gas prices.”

The Board of Equalization sets the excise tax rate each year based on the projected price and the estimated number of gallons drivers will buy in the upcoming fiscal year.

“Lower gas taxes are good for our economy and good for jobs, but even with this cut Californians will continue to pay one of the highest gas taxes in the nation,” Runner said.

According to the American Petroleum Institute, drivers in the nation’s most populous state pay 70.87 cents per gallon in state and federal fuel taxes, a figure that far outpaces the national average of 49.72 cents per gallon in taxes.

Gas prices in the Golden State have trended upward recently, going from $3.59 to $3.80 for a gallon of regular, unleaded gasoline in the last month, according to AAA’s Daily Fuel Gauge Report.

Despite the increase, that figure is still a far cry from a year ago, when prices stood at $4.23 per gallon.

As of Tuesday, the price for a gallon of regular, unleaded gasoline in the Santa Clarita Valley ranged from $3.69 to $3.97, according to GasBuddy.com, an online price-tracking website.

Lmoney@signalscv.com
661-287-5525
On Twitter @LukeMMoney

 

 

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