June 24, 2024 #1 Local News, Information and Event Source for the Century City/Westwood areas.

State Board Of Equalization To Meet To Consider Lowering Excise Tax For Gasoline

Gas prices continue to drop.

The state Board of Equalization will meet in Culver City today to consider lowering the excise tax rate for gasoline by 2.2 cents per gallon.

If adopted, the excise tax rate on gas will be 27.8 cents per gallon from July 1 through June 30, 2017. The current excise tax rate of 30 cents per gallon would remain in effect until June 30.

“Californians overpaid gas tax last year due to a bizarre and complex formula that most people don’t understand,” said BOE Vice Chair George Runner. “When prices fall we must lower the rate to ensure fairness. The cut will be a welcome and much-deserved tax break for Californians, who currently pay more taxes at the pump than drivers in other states.”

California drivers pay two types of state taxes on gas: sales tax, which is a percentage of the price, and a per-gallon excise tax.

Before the so-called “fuel tax swap” took effect in 2010, drivers paid the full sales tax rate — then 8.25 percent — and an excise tax rate of 18 cents per gallon.

The fuel tax swap lowered the sales tax rate on gasoline to 2.25 percent and requires the BOE to set a per-gallon excise tax rate annually before March 1. The excise tax rate is calculated so that drivers still pay the same amount in overall taxes at the pump as they would have paid before the swap.

In the 2014-15 fiscal year, the BOE collected nearly $5.4 billion in excise tax for the state’s Motor Vehicle Fuel Account, which helps pay for highways, roads and other public transportation projects.

The sales tax on gasoline also helps fund a variety of state and local road programs.

“In addition to tax relief, Californians need a clear tax system that’s easy to understand,” Runner said. “The current gas tax formula is a convoluted scheme enacted by the governor and Legislature in 2010. ”

“The lack of transparency continues to erode public confidence,” he said. “The public deserves to know how much tax is being collected and how it’s being spent.”

The excise tax rate takes into account a number of factors, including forecast gas price, forecast amount of gallons sold, sales tax revenue that would have been collected prior to the fuel tax swap, and tax revenue over- or under-collected in the prior fiscal year.

The rate ensures that over a three-year period, motorists do not pay more or less in overall gas taxes than they would have prior to the swap.

Related Posts

Bob Rosenbloom, Esteemed Owner of Bob’s Market and Community Pillar, Passes at 92

April 9, 2024

April 9, 2024

Bob Rosenbloom, the cherished proprietor of Bob’s Market on Ocean Park Blvd. in Santa Monica, passed away at his residence...

Don’t Miss Your Last Chance to Experience CORTEO by Cirque du Soleil!

April 25, 2023

April 25, 2023

The Show’s Run At The Microsoft Theater Ends On April 30  Time is running out for fans of CORTEO by...

Regulation of Short-Term Rentals in LA Failing as Enforcement Drops Significantly

April 4, 2023

April 4, 2023

Better Neighbors LA report highlights the inadequacies of enforcement measures for short-term rentals in Los Angeles, calling for increased regulation...

Non-Profit Helping Relieve Financial Burden For Cancer Patients

November 16, 2022

November 16, 2022

Cancer Cartel is helping cancer patients focus on their treatment, not the financial stress of living with a diagnosis. Learn...

100 Miles of Bus-Only Lanes Coming to L.A in Five Years?

October 17, 2022

October 17, 2022

L.A’s public transportation network is known for being slow due to traffic congestion. A new motion by L.A. City Council...

How to Wisely Manage Your Finances After a Job Layoff

October 3, 2022

October 3, 2022

Being laid off can be difficult, both emotionally and financially. It is important to manage your finances wisely during this...

Union Members Protest UC Policies in Westwood

May 3, 2022

May 3, 2022

Westwood and Wilshire protest takes place April 26 By Dolores Quintana The intersection of Wilshire and Westwood was the site...

Kale of All Kinds

March 16, 2022

March 16, 2022

Today at the Santa Monica Farmers Market we explore three different kinds of Kale from Cole Family Farms..Video sponsored by...

Name Revealed for Alice Waters’s Westwood Restaurant

October 20, 2021

October 20, 2021

Westside Dining Scene October 21, 2021 By Dolores Quintana Esteemed chef Alice Waters’s upcoming Westwood restaurant’s and the name has...

Community Volunteer Patrol Program Brings Civilians New Insight Into Law Enforcement

October 19, 2021

October 19, 2021

The West LA Police Department has a community patrol program bridging the gap between civilians and law enforcement. Video brought...

Police Seek Man Wanted for Sexually Assaulting Sleeping UCLA Student

September 2, 2021

September 2, 2021

Police are searching for a man wanted for sexually assaulting a female UCLA student while she slept. According to the...

Final Weekend of Marina Drive-In Movie Summer Series With New Movies Added

August 28, 2021

August 28, 2021

WHERE: Marina del Rey Boat Launch Ramp, 13477 Fiji Way at Parking Lot #2 COST: $20 per vehicle, per movie...

UCLA Admits Most Accomplished Class in Its History

July 20, 2021

July 20, 2021

New freshman and transfer cohorts are also among university’s most ethnically diverse By Ricardo Vazquez | UCLA Newsroom UCLA has...

Heritage Museum Reopens with Unique Exhibition

June 24, 2021

June 24, 2021

The California Heritage Museum welcomes back visitors with a unique and stunning quilt exhibition, learn more in this video brought to...