Agency to Vote on Reducing California Gas Tax by 7.5 Cents

The California gas tax is set to go down 7.5 cents a gallon this summer, although consumers may not see a dip at the pump.

The state Board of Equalization said Friday it is recommending a tax cut because of falling gas prices. The five-member tax board will vote later this month to lower the excise tax rate from 18 cents to 10.5 cents.

The change would take effect July 1.

The annual adjustment is the result of an accounting maneuver to close the 2010 state deficit.

The agency says change won't affect overall gas prices because suppliers are not required to pass on the savings.

Drivers pay an additional 36 cents a gallon in other taxes for transportation and highway projects, plus a 2.25 percent sales tax.

Copyright AP - Associated Press
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