Gas price rise helps fuel cities

Gas price rise helps fuel cities
- November 2, 2012
- David Brownstone, economics professor, is quoted in The Desert Sun November 2, 2012
From The Desert Sun:
Last month’s 60-cent spike in fuel prices may have been upsetting and costly for
many Coachella Valley drivers, but for valley cities the sudden and significant upswing
could translate into a positive bump in their general fund budgets. Every Coachella
Valley city that has gas stations receives a fraction of the sales tax derived from
each gallon of gasoline sold. The only valley city that doesn’t is Indian Wells, which
has no gas stations. If the price of gas goes up, so does the sales tax each city
collects… “Sales taxes on gasoline definitely increase in magnitude — but not percentage
— as gas prices increase. So there is a silver lining for cities and the state as
gas prices increase,” says David Brownstone, an economics professor with the University
of California, Irvine.
For the full story, please visit http://www.mydesert.com/article/20121102/NEWS01/311020040/Gas-price-rise....
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