Tax agency rejects 4-cent gas tax increase

Gov. Jerry Brown’s office has to find another $617 million for his next budget because a tax-collecting agency he gutted last year has used some of its waning authority to reject a 4-cent increase in fuel taxes.

Normally, the Board of Equalization’s annual requirement to set fuel tax rates is almost automatic. It has tweaked recommendations, but it has not rejected them.

This time, two Board of Equalization members said they did not want to hike fuel taxes so soon after the Legislature’s adoption of a separate 12-cent per gallon gas tax that took effect in November.

“I’ve never voted for a tax increase on gasoline for my constituents. It hurts them,” said board member Diane Harkey, a Republican who is running for Congress. …

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