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Slide 2:Gas prices drive up sales tax revenue in state (03-25) 04:00 PDT Sacramento - -- While motorists fume over the skyrocketing cost of gasoline, state officials say the extra sales tax revenue from high prices at the pump is proving to be a boon as California faces an $8 billion budget deficit. And lawmakers are likely to tussle in coming weeks over how to spend the unexpected revenue. Sales tax receipts from gasoline have been rising sharply over the past five years - from $2.1 billion in 2003, when a gallon of regular unleaded cost an average of $1.88, to $3.8 billion in 2007, when the same gallon cost $3.12, according to the state Board of Equalization. If gas hits an average of $4 a gallon this year - not an unrealistic possibility considering that fuel prices rose to an average of $3.63 on Monday - state



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