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California Gas Tax Cut Vote 5-0

George Runner today issued the following statement after a 5-0 Board of Equalization vote to reduce the state’s gasoline excise tax rate by 6 cents, from 36 cents to 30 cents, effective July 1 of this year:

“This gas tax cut, although less than originally proposed, is still good news for overtaxed Californians, who currently pay both higher gas prices and higher taxes than residents of other states.

“Today’s vote stems from a confusing and complicated formula known as the ‘gas tax swap.’ The Legislature enacted the formula a few years ago in order to redirect more than a billion dollars of transportation funding elsewhere. Under the gas tax swap law, the Board must annually adjust the gas tax rate to guard against over collection of tax.

“State revenues from fuel taxes reached a record $8.7 billion last fiscal year. Today’s vote will help correct the over collection of tax that is resulting from lower gas prices.

“But even after this tax cut takes effect July 1, Californians will continue to pay more gas taxes and fees than residents in nearly every other state. In fact, the Board’s cut won’t even fully offset the cost of a new ‘hidden gas tax’ that took effect January 1 to help fund high speed rail and other so-called anti-global warming efforts.

“Instead of raising taxes, lawmakers ought to use all of the dollars California drivers already pay at the pump, including the new hidden tax dollars, to improve our roads and eliminate congestion. In addition, we ought to invest more General Fund dollars in transportation as well.”

Elected in November 2010 and re-elected in 2014, George Runner represents more than nine million Californians as a member of the State Board of Equalization.



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