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Gas Prices - Excise Tax Lowered

 

Last updated 2/24/2016 at 9:28am



Excise tax rate for gasoline will be lowered by 2.2 cents per gallon following a 3-2 vote by the state Board of Equalization Tuesday Feb. 23

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The current excise tax rate of 30 cents per gallon will remain in effect until June 30. 2016 however, from July 1 through June 30, 2017 excise tax rate will be 27.8 cents per gallon.

“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 2014-15 fiscal year, the BOE collected nearly $5.4 billion in excise tax for the state’s Motor Vehicle Fuel Account, which helps pay for highways, roads and other public transportation projects.

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