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How sales tax is added to a gallon of gas

Q. Honk: I always read your articles and your one on gas taxes raised a question in my mind. Unlike the fed and state taxes, which are based on each gallon being purchased, sales tax is based on the purchase price. Is the sales tax based on the full purchase price, or on the price of gas before the fed and state taxes are added in? Are we paying sales tax on top of fed and state gas taxes?

– Thomas Mayer, West Covina

A. Yep.

The base sales tax for gasoline, at 2.25%, is much lower than for most stuff.

For clarity on when it is applied, Honk reached out to the California Department of Tax and Fee Administration, and a spokesperson told him:

“The sales tax rate is applied to the price of gasoline after the federal and state excise taxes have been added.”

As you may recall, Thomas, Honk recently trotted out that, on each gallon of petro, the federal tax is 18.4 cents, while the state tax is 50.5 cents.

Q. Years ago easements were left in place to connect Fairmont Boulevard over the Santa Ana River and the 91 Freeway. I notice what seems to be the beginning of serious construction on both the north and south sides. Is this about to happen?

– Don Marshburn, Brea

A. No.

Honk checked in with Caltrans, the city of Anaheim, the county and the Orange County Transportation Authority, because he wanted you, Don, to get your money’s worth.

“I checked with our traffic folks and they said this is not an overpass project,” Lauren Gold, an Anaheim spokeswoman, told Honk. “We suspect (it) is the OC Loop bike trail project through the county of Orange.”

Shannon Widor, a spokesman for OC Public Works, an arm of the county government, confirmed work on that trail.

“OC Public Works is constructing the Segment H portion of the OC Loop on the north side of the 91 Freeway,” he told Honk. “This includes new bikeway amenities along Esperanza Road and Fairmont Boulevard that will be another connection with the Santa Ana River Trail in the area.”

The OC Loop is a mostly completed plan for a rectangular-box-shape trail system for bicyclists and walkers that is mostly off of streets. It runs along the Huntington Beach coast and cuts through Santa Ana, Garden Grove and Yorba Linda.

Don, it is certainly possible you saw equipment for another project of some sort, and if Honk learns of any he will pass the info along.

Honkin’ fact: A Maricopa, Arizona woman found two of her vehicle’s tires slashed in her driveway. She also found a severed finger nearby, said police, who added that a trail of blood led to a home. Police say that finger was from a neighbor who apparently had an argument with the woman and her husband the day before. The suspect was arrested on various charges. (Source: The Associated Press)

To ask Honk questions, reach him at honk@ocregister.com. He only answers those that are published. To see Honk online: ocregister.com/tag/honk. Twitter: @OCRegisterHonk


Source: Orange County Register

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