State of California cashes in on record gas prices

Nov 6, 2012

The good news; California’s gas price per gallon dipped below $4, the bad news is Golden State motorists’ paid a record $8.3 billion in state fuel taxes.

During the 2011-12 fiscal year, George Runner, of the State Board of Equalization said Sacramento is reaping the rewards for high fuel prices.

“Our latest numbers show that high gas prices resulted in a record windfall for government at the expense of California consumers,” Runner said. “It’s bad enough that California’s gas tax is among the highest in the nation. It’s even worse that gas tax goes up whenever gas prices rise.”

From July 1, 2011 through June 30, 2012, the California State Board of Equalization collected $6.9 billion in motor vehicle fuel taxes, up from $6.7 billion the prior year. Excise tax revenues accounted for $5.2 billion, while sales tax revenues accounted for $1.7 billion.

“What’s particularly concerning about these numbers is that they would have been even higher had the Governor been successful in extending the higher sales tax,” noted Runner.

California’s fuel taxes and fees are just about 70 cents per gallon, making the Golden State the second highest in the nation, according to the American Petroleum Institute.

Runner said that California motorists are even hit with a double tax. “The sales tax is calculated on the total price of the fuel sale including excise taxes, resulting in double taxation—California consumers pay a tax on a tax.”

For more stories:

© Copyright 2012 Kimberly Dvorak All Rights Reserved.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s