State Reaps Gas Sales Tax Windfall Despite Lower Consumption

By Erik Anderson / Environment Reporter, KPBS Public Broadcasting

Published May 25, 2007 at 12:46 PM PDT

This story was published more than 18 years ago.

Gasoline consumption is down since pump prices started going up. The California State Board of Equalization tracks how much tax money is being collected on gas. The numbers indicate that consumers bou

Gasoline consumption is down since pump prices started going up. The California State Board of Equalization tracks how much tax money is being collected on gas. The numbers indicate that consumers bought less gas this February than they did the year before. Sales dropped two and a half percent. The price at the pump was 17 cents a gallon higher this year.

The board's Anita Gore says, even with the decline, California is enjoying a huge revenue windfall from gas sales.

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Gore : In 2002 gasoline sales generated about $1.7 billion in sales taxes. The numbers that we have for estimated sales tax revenues from gasoline sales in 2006 is estimated to be $3.2 billion.

Even with the drop in sales this February, the state collected $10 million more in taxes than the year before.