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.

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