California tax agency to vote on reducing gas tax by 7.5 cents; consumers may not see change

EnergyAssociated Press

California officials are considering reducing the state's gas tax by 7.5 cents, although consumers may not see a difference at the pump.

The state Board of Equalization will decide on changes to the state gas tax at its meeting Tuesday in Culver City. The agency's staff is recommending reducing the excise tax rate from 18 cents to 10.5 cents.

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Suppliers aren't required to pass the savings along to consumers.

The annual adjustment based on gas prices is the result of a legislative maneuver to close the 2010 budget deficit. Two elected members of the tax board blasted the system as confusing.

Californians currently pay at least 54 cents per gallon in fuel taxes to the state and federal government. The taxes pay for transportation projects and road repairs.