Proposed Excise Tax Rate Change Effective July 1, 2013
By Staff Reports
(Victor Valley)- – State laws enacted in 2010 created a new tax structure for gasoline and mandated the California State Board of Equalization (BOE) to adjust the state gasoline excise tax rate by March 1 of each year. This rate adjustment ensures the overall state taxes consumers pay at the pump remain the same as they would have been under the prior tax structure.
At its Thursday, February 28, 2013 meeting in Culver City, the BOE will discuss the proposed adjustment for July 1, 2013 through June 30, 2014. The rate will take effect July 1, 2013.
Governor Arnold Schwarzenegger signed Assembly Bill x8 6, Ch. 11, and Senate Bill 70, Ch. 9 in March 2010. This legislation lowered the sales and use tax rate on gasoline and increased the excise tax rate on July 1, 2010. The laws require the annual sales and excise taxes paid on gasoline to remain revenue neutral. It also mandated the BOE to adjust the excise tax rate by March 1 of each year in order to ensure revenue neutrality, as reflected in the graphic below:
Proposition 30’s quarter percent tax increase does not apply to gasoline purchases and does not affect this computation. Gasoline sales tax revenues fund local government programs, while the state excise tax on gasoline funds highway and mass transit projects throughout California.
It must be wonderful for a majority of voters in this state to be totally ignorant of who you elect to office. The coming $8/gal gas is our doing and is a self inflicted wound.