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Gas Prices May Dip in California Thanks to Lowered Excise Tax

 
Gas Prices May Dip in California Thanks to Lowered Excise Tax
Posted February 14th, 2014 @ 3:12pm

There's a bit of good news when it comes to the money you will be spending on gas later this year -- taxes are going down.  

The Board of Equalization is recommending reducing the excise tax used for public road and mass transit projects to 36 cents a gallon starting in July.

"It's good news for California taxpayers that as the formulas have been put into place, we're going to be having before our board the lowering of gas tax by 3.5 cents a gallon," George Runner from the Board of Equalization said. 

Runner says, even so, Californians will still be paying some of the highest gas tax rates in the country.

"This will make California No. 49 instead of 50, but at least it's going to make gas a little cheaper for Californians once they start going to the pump their in July," he said. 

The annual adjustment is a result of a law known as the "fuel tax swap" that lowered the sales tax rate on gasoline by 5 percent while increasing the excise tax.   

 

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