Posted in: Gas Prices,
by Patrick DeHaan on Mar 5, 2014 01:00 PM
Your eyes aren't deceiving you: if you're a motorist in California, you might just not know what hit you, but gas taxes will be dropping slightly on July 1.
California’s Board of Equalization voted last week to reduce the per-gallon excise tax on a gallon of regular gasoline by 3.5-cents per gallon to 36 cents on each gallon, U-T San Diego reports.
The decrease takes effect July 1 and comes a year after the board voted to raise the tax by 3.5 cents per gallon.
“Today we have some good news for California taxpayers,” said Board Vice Chair Michelle Steel. “Because of our vote today, all Californians will benefit from a little less pain at the pump."
State officials made the decision to lower the tax rate due to the likelihood of falling gas prices. A gallon of gas in San Diego is down more than 40 cents since a year ago.
Since 2010, a public agency in California sets the state’s excise tax rate based on a formula called the “fuel-tax swap,” which incorporates consumption and gas price projections.
Motorists in the other 49 states could only hope to hear these words, but it's unlikely in the future as many states look to increase, not decrease, their gasoline taxes.