TAX NEWS - April 2009

California Gas Use Down 1.8%, Diesel Use Drops 16%

Betty T. Yee, Chairwoman of the Board of Equalization (BOE), today announced gasoline figures that show Californians used less gasoline in January 2009 than in January 2008, down 22 million gallons from the prior year, a decline of 1.8 percent. Californians used a total of 1.21 billion gallons of gasoline in January 2009, compared with 1.23 billion in January 2008.

The average California gas price at the pump in January 2009 was $2.05 per gallon, a 37.9 percent decrease from the average price in January 2008 when it was $3.30. Gasoline sold at the lower price in January 2009 generated approximately $184 million in sales tax during that month, an estimated $117 million less than was generated in January 2008.

Diesel fuel sold for use on California roads totaled 197.3 million gallons in January 2009, a 16 percent decline, which is 37.4 million gallons below the January 2008 total of 234.7 million gallons. The decreased consumption reflects the impacts of the recession that is associated with less freight movement on California roads and highways. California diesel prices were $2.30 in January 2009, down 32.8 percent compared to January 2008 when the average diesel price was $3.42.

The BOE is able to monitor gallons through tax receipts paid by fuel distributors. Figures for February 2009 are scheduled to be available at the end of May 2009.

The five-member California State Board of Equalization is a publicly elected tax board. The BOE collects more than $53 billion annually in taxes and fees supporting state and local government services. It hears business tax appeals, acts as the appellate body for franchise and personal income tax appeals, and serves a significant role in the assessment and administration of property taxes.