- Associated Press - Friday, February 13, 2015

SACRAMENTO, Calif. (AP) - 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.

The five-member tax board will vote to lower the excise tax rate from 18 cents to 10.5 cents at its Feb. 24 meeting in Culver City. The agency’s staff is recommending the tax cut because of falling gas prices.

The annual adjustment based on gas prices is the result of an accounting maneuver to close the 2010 state deficit. The change would take effect July 1.

The agency says the annual changes generally don’t affect overall gas prices, in part because suppliers are not required to pass on the savings.

Californians pay a myriad of taxes at the pump. Drivers pay an additional 36 cents a gallon for state and federal transportation and highway projects, plus a 2.25 percent sales tax that primarily goes to local government.

State officials say they are facing a long-term shortfall in transportation funding because of declining revenue from gas taxes.


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