Drivers

California Diesel and Gasoline Taxes To Move Higher

March 07, 2013

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The state known for typically having some of the highest fuel prices and fuel taxes in the nation will see them move higher later this year.

The California Board of Equalization has voted to increase the excise tax on gasoline by 3.5 cents per gallon. This will move it up to 39.5 cents a gallon starting on July 1.

The board reviews the tax annually to make sure fuel tax revenues remain steady to pay for infrastructure work. Less fuel use due to higher pump prices and more fuel efficient cars have cut into the money brought in the past several years. The excise tax is not directly paid by consumers, but it is typically passed along to them by retailers.

Recent figures indicate diesel use has increased in the Golden State, and it has escaped seeing an excise tax hike by the board at least through the end of June of 2014. However, the state sales tax on diesel increased the first of this year and is set to move up slightly higher this year, although far less than the hike that will be seen on the state gasoline excise tax rate.

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