California BOE Considers Reducing Gasoline Excise Tax, July 2015

Feb 23, 2015 | Gail Cole

Fuel taxes pay to maintain roads like this one in Bishop, California.

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.

Automate fuel tax transactions. Learn more.

photo credit: North Lake in Autumn, Bishop California via photopin (license)

Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.

Avalara Author

Gail Cole

Avalara Author Gail Cole

Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.