This will be effective on July 1.
The rate comprises an 18 cent base rate that is allocated under streets and Highways Code Sections 2104-2108 to the state highway system, cities and counties, and a variable rate, established with the Fuel Tax Swap of 2010 that is intended to replace the Proposition 42 state sales tax on gasoline.
An updated memo describing these taxes and their allocations in detail may be found at on CaliforniaCityFinance.com
. The memo also contains city-by-city and county-by-county estimates of revenue allocations for FY 2014-15 and FY 2015-16. These estimates were revised to take the BOE’s recent action into account.
Estimates are based on California state Department of Finance estimates of statewide revenue that will be generated from the fuel taxes.
For more information on BOE’s action, please see: ”Board of Equalization Acts to Reduce Variable Gas Tax Rate
,” CA Cities Advocate
, Feb. 25, 2015.