Runner renews bid to lower gasoline tax

Prices topping $2 across the state

This story appeared in the Antelope Valley Press May 10, 2001.

By LISA WAHLA
Valley Press Staff Writer

With gasoline prices soaring, the Antelope Valley's assemblyman is remounting a crusade to ease the burden on taxpayers by lowering the gas tax.

Last year Assemblyman George Runner, R-Lancaster, tried to lower the cost of fuel by eliminating the state's 8% sales tax on gasoline, which costs fuel-pumpers about 15 cents a gallon. His attempt failed on the Assembly floor.

Now, with prices topping $2 across the state, Runner has softened the concept and is proposing to cap the sales tax. That way, if prices continue to rise, the state would collect taxes on a lower amount, $1.40 per gallon, rather than the $2.50 or $3 per-gallon price some are predicting.

"The state shouldn't benefit from the financial drain many motorists will pour into their gas tanks this summer," Runner said.

Runner submitted the idea Tuesday as an amendment to Senate Bill 1X, legislation coming out of the energy crisis that creates a "windfall" profit tax on electricity prices topping $80 per megawatt hour.

The plans are similar, Runner said: Power companies will not be able to excessively profit from skyrocketing energy prices, and the state should not profit from an unexpected windfall from skyrocketing gasoline costs.

"I think it's good policy and it's hypocritical to look at industry, businesses, for profiting from the (energy) crisis and to not look at the state as profiting" from exorbitant gas prices, Runner said.

SB 1X was approved by the Senate, 25-12, Monday, and Runner's amendment should be heard on the Assembly floor next week, said Runner spokeswoman Ginny Ward.

The price of gasoline is determined by a number of criteria, including the costs of crude oil sold by oil-producing countries.

State and federal excise taxes add another 36 cents a gallon, and California then taxes that total with its sales tax.

Runner's 2000 bill to do away with the sales tax failed. But during budget negotiations last year, the funds raised by the tax were diverted from the state's general fund to transportation needs.

If gas prices continue to rise, however, the extra sales tax money won't go toward roads, Runner said.

The dollars will go straight to the general fund because last year's agreement set up a certain dollar amount - instead of the entire tax - to go from the sales tax to transportation.

Runner expects to submit his plan as a bill on its own in the next few weeks.