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LAO: "No on 30" Camp Mostly Wrong on Gas Tax Claim

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(Sacramento, CA)
Wednesday, October 24, 2012

The "No on 30" campaign is driving the "gas tax" message with new TV and radio ads:

Ad #1: "$1 billion more a year for gasoline, clothes - things we buy every day."
Ad #2: "…and sales taxes, on gas, clothes and things we buy every day."

Clothes, yes.  But the non-partisan Legislative Analyst's Office says Prop 30's quarter-cent sales tax increase would not apply to drivers buying gasoline.  And the LAO did not count any revenue from gas purchases in its projections on how much money Prop 30 would bring in.

Now being the state budget, this is a little more complicated than that.  The LAO says Prop 30's sales tax hike would apply to diesel fuel.  It would cost drivers of diesel vehicles like semi-trucks an extra penny for every $4 of fuel they purchase.

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