George Runner, a member of the State Board of Equalization is seeking to persuade lawmakers to support a limit on gas taxes in the event gas prices continue to exceed $4.00 per gallon. In particular, he is proposing to limit application of California sales tax to the first $4.00 per gallon.
Currently, California gasoline taxes and fees average 67 cents per gallon, one of the highest in the nation. Included in California gas taxes and fees are the following:
- Federal excise tax of 18.4 cents per gallon
- CA excise tax of 35.7 cents per gallon
- CA sales tax of 2.25% (plus local taxes)
However, California sales tax on gasoline is unique as it is calculated on the total price of the fuel sale including excise taxes–leaving Californians to literally pay a tax on a tax. Runner’s proposal seeks to provide California taxpayers with some relief as gas prices increase.