The State Board of Equalization just passed a 3.5 cent tax increase on gasoline and diesel at the pump while revamping the manner that the tax is administered.
The increase is going to pose a very large problem with local governments that rely on sales tax revenues, as it reduced the sales tax per gallon from 18 cents to 10 cents, while raising the excise tax from 36 cents to 39.5 cents.
This will take $500 million in the fiscal year starting July 1 away from local government and transfer it to the state general fund.
This is after the state has already taken redevelopment funds from local government in 2011.
Mike Monahan, Auburn