California Decreases Diesel Tax

The Board of Equalization of California has decreased the state’s diesel sales tax for next year by 1.3 cents to 7.1 cents per gallon.

The tax is going down because it is tied to the cost of diesel fuel, said Robert Pitcher, director of state laws for American Trucking Associations. "It’s a purely administrative move, based on the fact that the price of diesel fuel has been going down."

The total fuel tax rate that interstate carriers will use on their International Fuel Tax Agreement returns for next year will be 25.1 cents per gallon.