Posted by Trent Accounting

Gas Taxes - How Much Are They In Your State?

Gas Taxes - How Much Are They In Your State?

A gas tax is also known as petrol, gasoline as well as fuel duty and it is imposed on any state when the fuel is sold. In the majority of the countries, fuel tax is applied on the fuels which are used for transportation. Fuel rates are taxed at a very low rate and they do not increase a lot as well. Infact there are many countries where the gas taxes have not been increased or updated since decades now. 

In some countries, fuel tax is a source of revenue for the state which can then be used to maintain the infrastructure of the country. Apart from that, fuel tax can also be used as eco tax in order to protect the environment and keep it safe.

It is true that there are many governments that cannot afford to improve the infrastructure of their country because they have to meet other demanding charges of machinery, asphalt as well as other gas taxes which might increase as well. 

It is also true that there are many states who have waited for a decade before increasing their gas taxes. In fact, there are 12 states which have increased gas rates after two decades which is a very long time. 

Alaska is a state which hasn’t increased its gas taxes since 1970 and Mississippi has not increased gas taxes since 1980. 

When did your state increase the gas taxes?

It is a common fact that gas taxes cannot give enough revenue for infrastructure facilities unless these gas taxes are minimal and can adjust with the construction costs that are rising each day. 

Gas taxes have not increased since decades nor updated and in fact there have been some serious declines in their purchasing power. These declines have had a serious negative impact on some infrastructure projects in the state. 

Some states have recently updated their infrastructure and since the year 2013, in total 27 states have increased their gas taxes. Some of the states are New Jersey, Oklahoma, New Hampshire, Montana, South Carolina, Maryland, Massachusetts and Iowa. 

With the agreement between all the states, the act of increasing the gas taxes was then implemented. State lawmakers are deciding on to update the outdated gas taxes as well as to fund the infrastructure of their states so that their economy is benefitted. 

Apart from just raising and updating the gas taxes, these states are also deciding something better for the states. Their decision of ending the fixed gas rate and instead choosing variable rate gas will enable the state to raise up a great amount of revenue from the gas taxes. 

Raising gas taxes in seven states in order to make improvements in transportation department

This time in the summer, gas taxes were by far the lowest they could ever have been in twelve years which makes it possible to now pay attention on improving the transportation infrastructure. 

In the united states of America, the gas taxes are 18.4 cents on each gallon and 24.4 cents for the diesel fuel. In the united states of America, the first time that the gas tax was introduced was in the year 1919. However, these gas taxes were revised and updated many times after that. 

Federal taxes in the United States of America

In the year 1932, the first federal gas tax was implemented in the united states of America. It was also declared that 60 percent of the gasoline taxes were used in maintaining the infrastructure such as bridge as well as highway construction. 

Due to the implementation of the gasoline taxes, 35.2 billion dollars were raised in 2014 out of which 25 billion dollars were raised because of the gasoline taxes. The inflation rate of the gas taxes from the year 1993 till 2015 have been 64.6 percent. 

The bottom line

How long has it been since your state increased the fuel tax? It is not a factor to worry if your state increases of updates the gas tax because that will be for the betterment of the country.

The revenues that are earned from the increased fuel taxes will then be used to improve the infrastructure of the country and used in other transportation departments. 

Trent Accounting