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Runner Discusses Proposal To Cut The Gas Tax

Assemblywoman signs onto legislation to ease prices at the pump

At a press conference today Assemblywoman Sharon Runner R-Lancaster) joined Assemblywoman Audra Strickland (R-Moorpark) to discuss Strickland's legislation that would eliminate California's state sales tax on gasoline. "The hard-working families of California are suffering at the pump and need immediate relief," Runner said. "California taxes are excessive enough. This is a common sense measure that will give people some relief."
The bill, AB 2621 (Strickland), of which Runner is a co-author, removes the state sales and use tax on the purchase price of gasoline. The State of California currently collects 18 cents per gallon of gas in an excise tax. This bill would simply eliminate the sales tax that is charged to the consumer in addition to the excise tax. Currently, five states in the U.S. do not charge sales tax on gasoline:  Alaska, Delaware, Montana, New Hampshire, and Oregon. Only three states in the U.S. have a higher sales tax on gas than California:  Minnesota, Nevada, and Washington. As of May 8, the average statewide price for regular was $3.33. That is a 13-cent increase from the previous week and an 81-cent increase from one year ago. During the same time the national average for self-serve regular was at $2.90.  This is 42.3 cents lower than the price of regular in California.
The average driver uses about 25 gallons a week with an 18-gallon gas tank. When the price of gas is $3.50/gallon the consumer is paying a 23.66 cent sales tax for each gallon they purchase. That means, paying 23.66 cents per gallon, for 25 gallons per week multiplied by 52 weeks in a year, the average consumer is paying over $300.00 a year in just gas sales tax. "With gas prices this high, families are having to choose a gallon of gas over other essential needs," Runner continued. "I am co-authoring this legislation because it is a simple measure that will give Californians a break and save them money at the pump so they can use those dollars for other priorities."