California – BOE to Consider 7.5 Cent Gasoline Excise Tax Rate Cut

Salt Report 3563 – On February 24, 2015, in Culver City, the new Board members will consider lowering the fuel excise tax from $0.36 to $0.285 per gallon.  If passed, the $0.075 reduction will be effective beginning July 1, 2015.  In fiscal year 13-14 the excise tax brought in $5.8 billion.  This potential rate adjustment is known as the “fuel tax swap” was which took effect in 2010.

The attached Youtube video provides a quick demonstration of how it works.

Further Information:

NR 11-15-G February 13, 2015

Fuel Tax Swap Demonstration