The California State Board of Equalization looks at the excise tax on gasoline on an annual basis. For the fiscal year beginning July 1, the tax will drop 3.5 cents per gallon for non-diesel fuel.
From KGO News:
The board approved lowering the excise tax rate on non-diesel fuel from 39.5 cents to 36 cents for the fiscal year that begins on July 1, just as the summer driving season kicks in.
The excise tax funds highway and mass transit projects. The board adjusts it annually and raised the tax by 3.5 cents per gallon last year.
More at KGO, including a quick explanation of why this excise can change every year, and a short mention that the price of gas at the pump doesn’t actually change in spite of the tax change: California gas tax drops but pump price may not. Via Silicon Valley Transit Users.
So they’re trying to raise taxes on bike sales to compensate for lost revenue from a lower gas tax? Do I have that right? That sounds like a great way to encourage people to use more gas and bike less.