Auto Club Applauds Governor and Legislature for Agreeing to Prop 42 Fix on November Ballot; Agreement Means Gasoline Sales Tax Revenue Will Be Used for Transportation.LOS ANGELES Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. -- The Automobile Club of Southern California The Automobile Club of Southern California was founded December 13, 1900 in Los Angeles as one of the nation's first motor clubs dedicated to improving roads, proposing traffic laws and improvement of overall driving conditions. praised the Governor and the Legislature today for reaching agreement on a solution to stop the use of gasoline gasoline or petrol, light, volatile mixture of hydrocarbons for use in the internal-combustion engine and as an organic solvent, obtained primarily by fractional distillation and "cracking" of petroleum, but also obtained from natural gas, by sales tax sales tax, levy on the sale of goods or services, generally calculated as a percentage of the selling price, and sometimes called a purchase tax. It is usually collected in the form of an extra charge by the retailer, who remits the tax to the government. revenues for non-transportation uses. The agreement will be placed on the November ballot as a constitutional amendment. In 2002 voters approved Proposition 42 guaranteeing the use of gasoline tax Noun 1. gasoline tax - a tax on every gallon of gasoline sold excise, excise tax - a tax that is measured by the amount of business done (not on property or income from real estate) revenue for transportation purposes. However, the Legislature used the gas tax money for other purposes in two out of the last three budget years. The new constitutional amendment will, if approved by voters, prohibit the state sales tax on gasoline for being used for anything other than transportation. The measure will provide at least $1.4 billion annually for state and local transportation projects. The Governor and the Legislature will have the ability to borrow Proposition 42 revenues twice every 10 years. Any loans must be paid back in three years with interest and a second loan cannot be obtained until the first one is paid back. "This is good news for all California motorists," said Thomas McKernan, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of the Auto Club. "The Governor and the Legislature have taken a major step toward improving the state's roads, highways and transit systems. This is a balanced approach to dealing with transportation needs." The constitutional amendment will be placed on the November ballot along with a $36 billion bond package that will provide almost $20 billion in road and transit improvements along with money for schools, levees, flood protection and housing. |
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