See here: gas-tax-california-rise-july
The Democrat super majority is starting to flex its muscles. They know they can do almost anything they want now.
Update: Actually the Legislature gave the Excise Board the power to adjust the tax several years ago. They use a very complicated formula that mostly revolves around total revenue desired and total gallons sold. Since fewer gallons are being sold, due to the success of fuel efficient vehicle that the Board promotes, revenue is falling. And we can't have that can we?
Update 2: From Diane Harkey, Assemby Rep from Dana Point:
"...we had a tax increase that sneaked
into the mix as part of the 2011 budget deal. CalTax is reporting the
following: "The 'fuel tax swap' adopted by the Legislature and signed by
Governor Jerry Brown in 2011 requires the Board of Equalization to set the gas
tax rate annually to raise an amount of revenue that would have been generated
under the prior law that imposed a tax of 18 cents per gallon, along with the
state sales tax on gasoline. The new system was put in place in exchange for
repealing the sales tax on gasoline, and the State Board of Equalization on a
3-2 vote approved the increase to the gas tax of 3.5 cents per gallon,
effective July 1." So, the lesson learned? What the government
giveth it taketh away.
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