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News & Politics News & Politics

It's official: Gas tax going up - California

Posted by on Feb. 28, 2013 at 7:24 PM
  • 54 Replies

The tax you pay on a gallon of gas will rise by 3.5 cents in California come July 1.

The state Board of Equalization voted 3-2 on Thursday to increase the excise tax about 10 percent, from 36 cents per gallon to 39.5 cents per gallon.

The increase is partly due to a $157 million shortfall in gas-tax revenue in fiscal 2012, and also a projection of less consumption by California drivers.

The state legislature switched its gas taxation system in 2010 so it could re-appropriate some of the gas tax money from road maintenance to other areas. It reduced the sales tax from 8.25 percent to 2.25 percent, but roughly doubled the excise tax to 35.3 cents. The excise tax has increased multiple times since, but previous hikes were by fractions of cents.

An excise tax is a tax on an individual product purchased, not based on the price. The publicly elected Board of Equalization must set the rate each year by March 1 so that the state generates the same amount of tax revenue it would have had it remained under the previous sales-tax system. Taxable sales of gasoline in California have fallen from 15.9 billion gallons in fiscal year 2006 to 14.6 billion gallons in fiscal year 2012.

A January study by the American Petroleum Institute listed California's gas taxes as second highest in the nation behind New York. After the July 1 tax increase, however, the 70.1 cents average tax per gallon will lead the nation.

Prices for regular gas in California are already among the highest in the nation. On Wednesday, the average price for a regular gallon of gas was $4.238, up from $3.69 a month ago. California's prices are second only to Hawaii, the Auto Club reported.

A person who drives 15,000 miles per year at 20 miles per gallon will pay an extra $26.25 per year in gas taxes. That's on top of the $478 per year in state, federal and sales taxes.

The sales tax on a gallon of diesel will increase by 1.94 percentage points, but the excise tax will stay at 10 cents per gallon.

Democrats Jerome Horton, Betty Yee, and John Chiang voted yes on the measure. Republicans George Runner and Michelle Steele voted against raising the excise tax. The publicly elected members can serve up to two four-year terms.

Board member George Runner, who voted no on the tax increase, said he took issue with a lack of transparency on the tax increase, and he said the state should not be in the business of predicting the volatile gas prices. He said the catch-up from fiscal 2012 only represented 1 cent of the 3.5 cent increase.

"This has nothing to do with good tax policy," he said. "This had everything to do with trying to solve a budget problem in 2010."

The U-T has requested comments from the three board members who voted to increase the tax rate.

Alan Gin, an economist at the University of San Diego, said he didn't think the price increase would affect demand for gasoline, but said it would gradually hit consumer spending.

"When the price of a gallon of gas goes up normally the money goes to oil companies," Gin said. "This time the state is taking it in terms of tax revenue so they could take that money and help offset the state deficit or could be spending it on programs."

The board in a statement said the excise tax revenues fund highway and mass transit projects, while the sales tax revenues go to local government programs.

by on Feb. 28, 2013 at 7:24 PM
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Replies (1-10):
jynkx
by on Feb. 28, 2013 at 7:26 PM

of course it is, they are bleeding us dry here.  it sucks to live here now.  seems we get hit with new taxes every freakin month.

lylalane7275
by Silver Member on Feb. 28, 2013 at 7:27 PM

How will the middle class in California survive with all these tax increases?

lylalane7275
by Silver Member on Feb. 28, 2013 at 7:29 PM

We still have some room in Texas, come on. :-)


Quoting jynkx:

of course it is, they are bleeding us dry here.  it sucks to live here now.  seems we get hit with new taxes every freakin month.



jynkx
by on Feb. 28, 2013 at 7:29 PM

idk, we are drowning with all of them.  everything is going up so freakin fast.  it is hard to keep up.  sadly, even though the cost of living keeps rising, the paychecks are not for most folks out here.


Quoting lylalane7275:

How will the middle class in California survive with all these tax increases?



jynkx
by on Feb. 28, 2013 at 7:30 PM


i literally dream of leaving the state.  i have been hearing so many good things about texas.

Quoting lylalane7275:

We still have some room in Texas, come on. :-)


Quoting jynkx:

of course it is, they are bleeding us dry here.  it sucks to live here now.  seems we get hit with new taxes every freakin month.





MrsSexyCurtains
by on Feb. 28, 2013 at 7:35 PM
1 mom liked this
Ugh California sucks major donkey balls. I can't wait to go back to Texas or Florida. Thank god we are military and can register our cars in Texas as well as use our Florida address to do our taxes.
Posted on the NEW CafeMom Mobile
Friday
by Platinum Member on Feb. 28, 2013 at 7:53 PM

I wish or state govt could do more about spending but there have already been many cuts.

I do so love a bash Cali post. Interesting how the same people who will trash Cali all day long will go for their weapons if you bash a southern or mid-western state, since all the 'real Americans' live there, I suppose.

 


Thank God......it's Friday!!!

Friday
by Platinum Member on Feb. 28, 2013 at 7:54 PM


Quoting MrsSexyCurtains:

Ugh California sucks major donkey balls. I can't wait to go back to Texas or Florida. Thank god we are military and can register our cars in Texas as well as use our Florida address to do our taxes.

I wish you Godspeed in leaving and am sorry you can't appreciate the good and beautiful things about Cali. You are missing out.

 


Thank God......it's Friday!!!

MrsSexyCurtains
by on Feb. 28, 2013 at 8:03 PM
It wouldn't be so bad if we were closer to the major cities but we are in the middle of no where. Like I have to drive past farms to get to the nearest city and it smells like cow manure once a month. I'm not used to this, I'm a city girl at heart. The only good thing is Vegas is only a 6 hour drive from us.


Quoting Friday:


Quoting MrsSexyCurtains:

Ugh California sucks major donkey balls. I can't wait to go back to Texas or Florida. Thank god we are military and can register our cars in Texas as well as use our Florida address to do our taxes.

I wish you Godspeed in leaving and am sorry you can't appreciate the good and beautiful things about Cali. You are missing out.


Posted on the NEW CafeMom Mobile
Friday
by Platinum Member on Feb. 28, 2013 at 8:09 PM


Quoting MrsSexyCurtains:

It wouldn't be so bad if we were closer to the major cities but we are in the middle of no where. Like I have to drive past farms to get to the nearest city and it smells like cow manure once a month. I'm not used to this, I'm a city girl at heart. The only good thing is Vegas is only a 6 hour drive from us.


Quoting Friday:


Quoting MrsSexyCurtains:

Ugh California sucks major donkey balls. I can't wait to go back to Texas or Florida. Thank god we are military and can register our cars in Texas as well as use our Florida address to do our taxes.

I wish you Godspeed in leaving and am sorry you can't appreciate the good and beautiful things about Cali. You are missing out.


When I was a kid we took vacations to some of the natural wonders here...Yosemite, the Sequoias, Death Valley...there is so much beauty in this state. We are hoping to make a road trip or two this summer, probably one with gas prices.I know Cali has it's problems but we have many great things here too.

I'm a Valley girl, the real Valley, San Fernando but we live a little North of there now. I can't wait for Spring to show up and see all the beautiful orange Cali Poppies all over town. What area do you live in?

 


Thank God......it's Friday!!!

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