Sacramento, CA…The California State Board of Equalization (BOE) announces the state excise tax on gasoline will drop by six cents per gallon on July 1, 2015. This will lower the excise tax rate from 36 cents to 30 cents per gallon.  “The lower rate is welcome news for overtaxed Californians who pay higher gas costs than residents of nearly every other state,” said Vice Chair George Runner. “It’s especially good timing for anyone hitting the roads this weekend.”

The Board approved the six cent tax rate reduction at its February 2015 meeting. The 30 cent per gallon rate will remain in effect until June 30, 2016.

While Californians will pay less in state excise tax on gasoline starting July 1^st, this may not necessarily translate to lower overall prices at the pump. Other factors, such as world crude oil prices and supply and demand, also affect gasoline prices.

The BOE is tasked with annually adjusting the state excise tax rate on gasoline by March 1^st of each year, after passage of 2010 laws known as the “fuel tax swap.” The new laws lowered the statewide sales tax rate on gasoline to 2.25 percent and raised the excise tax rate so that the total amount of tax revenue generated is equal to what would have been generated had the sales and use tax and excise rates remained unchanged.

The excise tax rate for the coming fiscal year is based on estimates of the projected average price of gasoline and number of gallons to be purchased. The difference between the projected and actual revenue collected from the prior fiscal year is then subtracted from the coming year projection to arrive at the upcoming rate.

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Elected in November 2010, and re-elected in 2014, Vice Chair George Runner represents the State Board of Equalization’s First District. He is a leading advocate for California taxpayers. Runner has worked to improve California’s tax policies and practices and to create and retain more private sector jobs in our state. Prior to his election to the Board, Runner served twelve years in the State Legislature, authoring the well-known California Amber Alert and California’s Blue Alert. As a thoughtful conservative, his legislative priorities included improving the economy, business growth, education excellence, and public safety for all Californians. As a member of the Senate Revenue and Taxation Committee, Runner consistently led the fight against tax increases and supported tax relief for families and businesses.

The five-member California State Board of Equalization (BOE) is a publicly elected tax board. The BOE collects $60 billion annually in taxes and fees, supporting state and local government services. It hears business tax appeals, acts as the appellate body for franchise and personal income tax appeals, and serves a significant role in the assessment and administration of property taxes.  For more information on other taxes and fees in California, visit www.taxes.ca.gov.