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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BeenThereDoneThat

Folks this is just the begining. The left has taken over the state houses with a majority (yea it dropped a couple days ago but is only temporary till elections to replace) and I promise you that this is just the begining. Get your wallets out, take out that second mortgage, because the out of control spending is coming to a town near you.


BeenThereDoneThat

I know I’ve posted this many time before but I don’t think that anyone in this state who votes these idiots in gets the meaning.


Beatles:Taxman


Let me tell you how it will be

There’s one for you, nineteen for me

‘Cause I’m the taxman, yeah, I’m the taxman


Should five per cent appear too small

Be thankful I don’t take it all

‘Cause I’m the taxman, yeah I’m the taxman


If you drive a car, I’ll tax the street,

If you try to sit, I’ll tax your seat.

If you get too cold I’ll tax the heat,

If you take a walk, I’ll tax your feet.


Don’t ask me what I want it for

If you don’t want to pay some more

‘Cause I’m the taxman, yeah, I’m the taxman


Now my advice for those who die

Declare the pennies on your eyes

‘Cause I’m the taxman, yeah, I’m the taxman

And you’re working for no one but me.


slomike

I love the image of a simultaneous tea spit take occurring when all the commentators read that headline.


tomsquawk

hope i’m not the only one that’s having trouble getting a visual


OnTheOtherHand

I didn’t catch that at first, thanks for the tip. They really should have inserted a comma after “gas” to make it easier for us slow folks.


r0y

No way! California increases taxes? I am shocked. SHOCKED, I say!


jarhead

I feel sorry for the poor kids trying to make a go of it and having to DRIVE any where to go to work , what the hell is this GOV thinking , they have to spend half there pay to get to work , GUESS WHAT go on welfare and stay home you will make more money

CALIFORNIA SUCKS, cant wait to leave the chicken s— state, and take my retirement with me


unclebeerman

I was born & raised here(over 50 yrs) but the California I have always loved has changed so much I can’t wait to retire & move to another state. It’s sad what has happened here.


Pelican1

There should have been a referendum vote of the people, not the legislature. If there had been, the outcome would have been much different.


tomsquawk

i beleive the afformentioned bills, AB 8 or 9 changed things to a simple legislative majority and did not need to go to voters. what are we anyway? (just people that have to do the real belt-tightening)


Pelican1

The problem is, the legislators are hypocrites. It’s the old do as I say, not as i do. No doubt they are ALL afforded expense accounts and such a tax increase will have little or no impact on their personal lives…as it will on ours.

This notion of belt tightening only to find out different state departments are squirreling away millions in tax payers dollars is quite disturbing.


tomsquawk

what concerns me is how earmarked dollars end up in the general fund. i’ve been listening to the L.A. mayoral race.a good example where parking fees designed to build off-street parking reportedly were lentot the general fund. it happens when no one is looking?


tomsquawk

The people of California voted for Prop 42 in 2002 to raise gas sales tax to benefit public transportation. Alot has happend since then; AB8, AB9, and SB70. As a result gas tax was swapped with excise tax with the ability of the BOE to reach backwards to catch up with funding “shortfalls”. Also, some revenues were re-directed to the general fund.


Lesson learned; you can pass a proposition but the it can be ammended and re-allocated while we are sleeping. Just like the real-estate developer who promises 1 unit per acre then comes back to say it isn’t financially feasible so density must be increased.


r0y

Obamacare come to mind?


tomsquawk

don’t know….haven’t read it yet…we’ll know when we get there….hahahaha not


Rambunctious

I thought I felt another hand in my pocket…this is theft pure and simple. I pumped $100.00 in my tank the other day and it didn’t even fill it up. Where is the limit? Is this what the people of CA voted for?


FineWine

It sure is. They continue to vote for it too.


tomsquawk

i’m thinking that part of the revenue increase goes to the general fund and who knows where that goes.


Rambunctious

State Pension/Retirement Plans…where else…


tomsquawk
tomsquawk

grin


Paso_citizen

That’s right. People voted for it. If you want to know who to really blame – just look in a mirror.

Then vote differently the next time.


r0y

I think most of the commentors here now probably did vote properly (eg: no new taxes, etc). Most of the whacky lefties have either fled or are having the fog begin to clear… and the whacky right left a while ago for other states, probably…


kayaknut

Thanks, Governor Brown…..


racket

It’s a neat system. Governor Brown’s Prius people get to avoid the bulk of the tax, while ‘Burb drivers pay a disproportionate share.


paragon

Big gas-guzzling SUVs pollute more, cause more wear and tear on the road, tip over and crash more, take up more space, and just generally represent more of a hazard and cost to society than smaller cars. Why shouldn’t they pay a greater share in taxes? Sorry, but if you want the luxury of driving a giant ugly unsafe boat-like SUV, then you should be prepared to pay for that privilege.


tomsquawk

higher mileage cars were cited as one reason for a tax increase; darned if you do, darned if you don’t.


would be in favor of more toll roads, regressive of course, but that could be addressed for lower income.


racket

Bingo. It is you, and Gov Brown, mandating your opinion on me.


r0y

Sadly, hybrids are less efficient and more harmful to the environment than internal combustion engine cars… oh well, at least their owners can “feel” better, albeit erroneously.


sloslo

LOL, I think you need to put down the crack pipe. Please cite a single study that says hybrids are less efficient than internal combustion engine cars. Rush Limbaugh doesn’t count.


doggin

There should be a tax on self righteous stupidity from those who try to dictate what free Americans can buy and drive.


SLOBIRD

And eat, drink, smoke, wear, etc…


danika

He was voted into office. Thanks, voters.


tomsquawk

actually, Arnold signed off on the tax swap in 2010.


danika

I was speaking to Racket’s comment directly relating to Governor Brown’s people, and noting that Governor Brown was elected into office by voters. I made no mention of anything else. But thank you for the refresher!


tomsquawk

noted! thanks.