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It’s official: California Gas tax going up – Board of Equalization approves excise tax increase from 36 cents per gallon to 39.5 cents per gallon.


Jonathan Horn
UT San Diego
March 2, 2013

The tax you pay on a gallon of gas will rise by 3.5 cents in California come July 1.

The state Board of Equalization voted 3-2 on Thursday to increase the excise tax about 10 percent, from 36 cents per gallon to 39.5 cents per gallon.

The increase is partly due to a $157 million shortfall in gas-tax revenue in fiscal 2012, and also a projection of less consumption by California drivers.

The state legislature switched its gas taxation system in 2010 so it could re-appropriate some of the gas tax money from road maintenance to other areas. It reduced the sales tax from 8.25 percent to 2.25 percent, but roughly doubled the excise tax to 35.3 cents. The excise tax has increased multiple times since, but previous hikes were by fractions of cents.

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