By Staff Reports
(Victor Valley) – More Californians hit the highway in the fourth quarter of 2015 than 2014, with drivers purchasing 3.799 billion gallons of gasoline in 2015 compared to 3.715 billion gallons in 2014, announced Board of Equalization (BOE) Member George Runner. This is the most gasoline purchased in the fourth quarter since 2007 when drivers bought 3.902 billion gallons—2.7 percent more than this year.
The average fourth quarter price for gasoline in 2015 was $2.63 per gallon (minus sales tax), according to the U.S. Energy Information Administration. This is the lowest fourth quarter price for gasoline since 2008, when it was $2.39 per gallon.
“An improving economy and lower gas prices have made it easier for Californians to hit the road,” said Runner. “It’s clear people prefer to travel in their cars, so roads must be a priority.”
Gasoline excise tax revenue for the fourth quarter of 2015 is estimated at $1.138 billion and sales tax is estimated at $323 million. Excise tax funds highways and mass transit, while sales tax revenue from gasoline funds various local government programs.
Diesel consumption rose in the fourth quarter of 2015 to 715 million gallons compared to 710 million in 2014. This is a 0.7 percent increase.
The average base price of diesel in the fourth quarter of 2015 was $2.35 per gallon. In 2012, it was $3.68 per gallon in the fourth quarter.
According to the BOE’s Chief Economist, higher diesel consumption is consistent with a growing economy.
Diesel excise tax revenue for fourth quarter 2015 is estimated at $102 million. Sales tax revenue for diesel was $159 million in the fourth quarter.
Taxable Gasoline Gallons: www.boe.ca.gov/sptaxprog/reports/MVF_10_Year_Report.pdf
Taxable Diesel Gallons: www.boe.ca.gov/sptaxprog/reports/Diesel_10_Year_Report.pdf
Estimated Fuel Excise Tax and Sales Tax Revenues: www.boe.ca.gov/legdiv/pdf/FuelRevenues.pdf
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George Runner represents the State Board of Equalization’s First District and is a leading advocate for California taxpayers. Prior to being elected to the BOE, Runner served in the State Legislature where he authored California’s Amber Alert and Blue Alert. As a member of the Senate Revenue and Taxation committee, he led the fight against tax increases and supported tax relief for all Californians. A thoughtful conservative, Runner’s priorities include improving the economy, business growth, education excellence, and public safety for all Californians.
The five-member California State Board of Equalization (BOE) is a publicly elected tax board. The BOE collects $60.5 billion annually in taxes and fees, supporting state and local government services. It hears business tax appeals, acts as the appellate body for franchise and personal income tax appeals, and serves a significant role in the assessment and administration of property taxes. For more information on other taxes and fees in California, visit the California Tax Service Center.
Note: This news release may discuss complex tax laws and concepts. It may not address every situation, and is not considered written advice under Revenue and Taxation Code section 6596. Changes in law or regulations may have occurred since the time this news release was written. If there is a conflict between the text of this news release and the law, decisions will be based upon the law and not this news release. For specific help, please contact the BOE at 1-800-400-7115.