Word spread Wednesday that the State of California had raised taxes on gasoline which would kick in Thursday, July 1st. In fact, the State of California did up the gasoline excise tax.
Local accountants and people in the gasoline business said that California did raise what’s called the excise tax on gasoline by 17.3 cents per gallon as of July 1st, but at the same time lowered the sales tax on gas by 6%. The previous excise tax amounted to 18 cents. Now it goes up to 35.3 cents.
State officials are quick to say that sales tax on gasoline goes down by 6% on July 1st, taking the edge off the higher excise tax. Why raise one tax and lower another? No immediate answer to that from Sacramento.