California BOE Considers Reducing Gasoline Excise Tax, July 2015
- Fuel Tax News
- Feb 23, 2015 | Gail Cole
Updated 2.25.2015: The BOE has voted to decrease the gas tax by 6 cents, from $0.36 per gallon to $0.30 per gallon. The change will take effect July 1, 2015 and will remain in effect through June 30, 2016.
Each year, the California State Board of Equalization must adjust the state’s gasoline excise tax, which funds public road improvements and mass transit. During Fiscal Year 2013-14, the tax generated close to $5.8 billion.
Currently in California, the gasoline excise tax rate is $0.36 per gallon. The BOE is considering dropping that rate by $0.075 (7.5 cents) to $0.285 per gallon for the period July 1, 2015 through June 30, 2016.
Since the great Fuel Tax Swap of 2010, drivers in California also pay a 2.25% sales tax on gasoline. Additional information, including a nifty Fuel Tax Swap Demonstration video, is available on the BOE website.
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