California passes gas tax hike

March 1, 2013

moneyThe California excise tax on gasoline will increase 3.5 cents on July 1 to 39.5 cents per gallon. [SF Gate]

On Thursday, the California Board of Equalization voted 3-2 in favor of the tax hike, which will add about 52 cents to every 15-gallon fill up.

The 3.5 cent increase is by far the largest since legislature rearranged the state gas tax system in 2010. That year the legislature lowered the sales tax on gasoline from 8.25 to 2.25 percent and raised the excise tax 18 cents per gallon to 35.3 cents. The legislation also required the equalization board to adjust the excise tax every year to achieve revenue neutrality.

Since the state determines the sales tax based on a percentage, not a per-gallon amount, revenues swing based on gas price and consumption projections. The California Department of Finance projected the need for a 3.5 cent excise gas tax hike.

From 2010 to the present, the excise tax only increased .7 cents.

Equalization board member George Runner, who vote against the 3.5 cent hike, said the finance department forecast was inaccurate and that the state only needed to raise the excise tax one penny.

“Obviously, it’s the wrong time to put additional taxes on Californians when they are already paying record gas prices,” Runner said.

Gas prices in San Luis Obispo County, which are some of the highest in the state, jumped considerably in the past month to more than $4.20 a gallon.

 


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45 Comments

  1. isoslo says:

    Democrats in charge of the state who don’t really give a darn what the people think as long as they get theirs

    (10) 12 Total Votes - 11 up - 1 down
  2. Jorge Estrada says:

    You have two choices: 1) accept the government you deserve or 2) get wealthier than the decision makers. To just leave bring the problem elsewhere.

    (-1) 3 Total Votes - 1 up - 2 down
  3. justme says:

    The real crime is the 20 yrs of a grand a mo. on average per family ripped off per mo. by banking worldwide, although mostly New York Banksters at that time. They called it “interest”. The pigs then used our money to invest in other emerging markets. Those markets are hauling ass now and we’re paying for it with just these type of past and present ripoffs.
    We must pay more for whatever now because those who own what was given to them through financial scamming can offer more for a tank ‘o gas somewhere in the world than you can.
    Ron Paul called it the greatest transfer of wealth in history. Obama’s job was too never mention it and let the bankers have it all, then he gets to be Pres. for 8 yrs. Blah, Blah.
    Until we fault the real reason for “gas goin’ up”, etc. Guess what, gass’ll be goin’ up.
    Hit the streets with signs (replaces the old “villagers with torches”) and hope the jaded media will cover it ( they don’t anymore, they’re corporate as hell) and hope for the best (that means staying outa prison).

    (8) 8 Total Votes - 8 up - 0 down
  4. Myself says:

    Why do these people think they can raise a tax or impose a new “tax”on us when they feel like it, if they would cut the waste that goes on we could save millions of dollars a day, for one small example, cal trans is rutting HWY one between Morro Bay and San Luis within a couple weeks the patches they put in on a substandard paving job that was done a few years ago will be as rough as a corn cob, there are a dozen people standing around all day, talking, laughing and generally doing nothing till pickup cone time to go home, cal trans is being safe by having so many people standing around, once the job is done half those people could go on to another job and get something else done for the day, in the real world it doesn’t take a dozen people and vehicles to pickup cones, but they operate this way, nothing gets done and the boe raises our taxes again to justify their jobs. We the taxpayer are going broke and the end is near.

    (17) 17 Total Votes - 17 up - 0 down
  5. abigchocoholic says:

    This article doesn’t tell me enough. How much total tax does CA add to each gallon (or estimated equivelent) of gas? And then, how much revenue does that total tax generate for our CA government? It must be an astounding amount of money.

    And then, where doe the money go? General fund? Dedicated places?

    (6) 6 Total Votes - 6 up - 0 down
    • tomsquawk says:

      take a look at AB8, AB9, SB 70 and the 2010 Tax Swap. and, it appears the general fund gets more along with other re-allocations. what concerns me is that under the new method the BOE looks back, sees where they didn’t tax enough and adjusts it going forward. some have questioned their calculations.

      so, the intial proposition that the people voted for was subverted

      (5) 5 Total Votes - 5 up - 0 down
  6. doggin says:

    Coulda swore I recall the intellects in charge of this state considering dropping the gas tax or part of it during high price times last year. Now with SAN LUIS OBISPO county fuel prices HIGHER than EVER for this time of year (price gouging) they add more taxes.
    Naturally we can all blame this on small car owners. Their unsafe,they create an unsafe road hazard as they apparently cannot accelerate up to normal lawful speeds and cost municipalities millions in lost road taxes.
    I am curious though if Prius’es come factory equipped with “I love Obama” etched into their ass ends or was that an option?.

    (13) 17 Total Votes - 15 up - 2 down
  7. BeenThereDoneThat says:

    Oh and let’s not forget folks that brings the total to .57 cents in taxes on every gallon of gas, between state and fed. Yet our roads are shit. Nothing like return on investment. I say we start paving our roads with worthless politicians.

    (33) 33 Total Votes - 33 up - 0 down
    • panflash says:

      Just for the record, and so that everyone will be clear on your point, I think you meant to say “57 cents” or “$0.57”- not .57 cents.

      (-7) 7 Total Votes - 0 up - 7 down

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