SACRAMENTO – California’s Board of Equalization this week unanimously approved a 6-cent cut in the state gas tax because of lower gas prices, reports the Associated Press.

“The annual adjustment is the result of a complicated deal to close the 2010 budget deficit. The agency sets the tax rate to bring in the same amount of money the old sales tax would have brought in. Because the tax board predicts lower gas prices, it is pre-emptively reducing the gas tax to avoid over collecting,” writes the Associated Press.

Beginning in July, the state’s gasoline tax will drop from 36 cents to 30 cents a gallon, “though Californians may not see a difference at the pump because of other factors affecting gas prices,” notes the news source. On top of the federal gas tax of 18.4 cents a gallon, California drivers pay an additional 2.25% sales tax that benefits local governments.

Board of Equalization staff initially recommended a 7.5-cent tax cut, but members landed on a lower number because gas prices have been increasing the past 30 days.