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.
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].
The Feb. 22 vote could have been worse for transportation infrastructure. An earlier post suggested the tax dip would be 4.1 cents.
FULL STORY: AM Alert: California set to lower gas tax by 2.2 cents
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