California's Gas Tax Continues to Plummet

Last February, the state Board of Equalization voted to reduce the gas tax by 6-cents. On Tuesday, it voted 3-2 to continue the decrease by 2.2 cents. The vote is required by an arcane rule that translates into tax *decreases when gas prices fall.

2 minute read

February 26, 2016, 7:00 AM PST

By James Brasuell @CasualBrasuell


Effect on state transportation budget

"Californians consumed 14.921 billion gallons of gasoline last year, according to the board, which means each 1-cent adjustment to the tax is worth about $149.2 million," writes Koseff. "So the state is looking at approximately $328.3 million less for public roads and mass transit next year." [Emphasis added].

In the face of falling gas tax revenues, the California Transportation Commission announced on Jan. 22 that it will slash spending by $754 million on current projects over five years.

The Feb. 22 vote could have been worse for transportation infrastructure. An earlier post suggested the tax dip would be 4.1 cents. 

Monday, February 22, 2016 in The Sacramento Bee - Capitol Alert

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