Six U.S. States Raise Fuel Taxes by Up to 9 Cents as California Gas Tax Hits 63.4 Cents
Updated
Updated · OilPrice.com · Jun 13
Six U.S. States Raise Fuel Taxes by Up to 9 Cents as California Gas Tax Hits 63.4 Cents
2 articles · Updated · OilPrice.com · Jun 13
Summary
July 1 will bring fuel-tax increases or formula adjustments in six states, led by California’s gasoline excise tax rising 2.2 cents to 63.4 cents a gallon and Maryland’s moving to 46.6 cents.
Those changes are largely driven by inflation-indexing rules or infrastructure funding plans: California and Maryland tie rates to CPI, New Jersey adjusts to support its $2.1 billion Transportation Trust Fund, and Mississippi is phasing in a 9-cent hike.
Illinois paused a scheduled 1.3-cent increase for six months, while Michigan’s January overhaul replaced a 6% gasoline sales tax with a flat 52.4-cent excise tax that officials describe as roughly revenue neutral.
Pump-price relief from falling crude has not erased the pressure. National average gasoline has dropped to $4.15 from $4.52 a month ago, but California still averages $5.83 and Illinois $4.48.
The state moves sharpen a federal debate over suspending the 18.4-cent gasoline tax, a step the Tax Foundation estimates would save most drivers only $6 to $11 a month while cutting Highway Trust Fund revenue by about $9 billion over three months.