California Local Governments Clean Up on Sales Tax on Gasoline

The San Francisco Chronicle reports:

Oil companies aren't the only ones raking in the money because of rising prices at the fuel pump. The coffers of state and local governments are seeing big gains as a result of increased revenue generated by the sales tax that consumers pay on gasoline.

Sales tax receipts from the gas pumps in the fourth quarter of last year grew by nearly $100 million from the same period the year before , according to the latest figures available. And that was when California's average price for a gallon of gas at the pump, which includes state and local sales tax along with fixed state and federal excise taxes, was at $2.56.

Since 2002, sales tax revenues on gas have been growing annually by $300 million to $400 million to reach $2.86 billion in 2005, according to the California Board of Equalization. And with fuel prices at the pump already well above $3, the gas tax boom will likely continue for state and local governments.

"There's a lot of blame to go around (when it comes to high fuel prices), but the government certainly should be on the list," said Bill Leonard, a member of the Board of Equalization. "The government is the biggest profiteer of them all."

No word yet on whether Barbara Boxer or Chuck Schumer or Dick Durbin want to hold hearings on this outrageous confiscation of wealth.