|
Post by MTwomn on May 4, 2022 23:32:54 GMT -5
History of Gas Taxes
States have been levying taxes on gas since the early days of automobile travel in the U.S. In 1919, Oregon became the first state to create a gas tax—at 1 cent per gallon. Within 10 years, every state was collecting gas taxes. The federal government followed suit in 1932, establishing a nationwide gas tax of 1 cent per gallon to help pay for Great Depression-related programs.
The basic concept behind the tax is the benefits received rule: Whoever benefits from something that the government provides should help pay for it. Thus, drivers pay a gas tax to help cover the cost of building and maintaining roads, bridges, and tunnels—as well as to help address traffic-related issues such as congestion and pollution.
Current problems
The federal gas tax has been stuck at 18.4 cents a gallon since 1993, the increasing squeeze on transportation budgets has led many states to raise the gas tax in recent years. Tax hikes have been imposed in 36 states since 2010.
Meanwhile, more states are changing how their taxes work to try to keep up with rising gas prices and overall inflation. Nearly half of all states now set gas taxes that vary in some way, using formulas linked to everything from gas prices and the Consumer Price Index to fuel efficiency and population growth. For example, Indiana links its gas tax rate to both the rate of inflation and the income levels of people who live in the state.
However, with the recent war in Ukraine causing gas prices to spike, Connecticut, Maryland, and Georgia have introduced temporary suspensions on gas taxes. Other states, including New Jersey, Ohio, New York, and West Virginia are also considering a gas tax holiday as prices hit higher levels.
When you add up all the taxes and fees, the average state gas tax is 30.06 cents per gallon, as of the beginning of 2021, according to the U.S. Energy Information Administration. Throw in the 18.4-cent federal tax, and it starts to add up.
|
|
|
Post by MTwomn on May 5, 2022 1:07:55 GMT -5
Here’s a rundown of the gas taxes in each state, including other taxes and fees:
Gas Tax Other Taxes and Fees Total Taxes in cents
State | Gas Tax
| Other Taxes and Fees
|
| Total
| AL
| 28
| 1
|
| 29.00
| AK
| 8
| 0.95
|
| 8.95
| AZ
| 18
| 1
|
| 19.00
| AR
| 24.5
| 0.3
|
| 24.80
| CA
| 51.1
| 7.7
|
| 58.80
| CO
| 22
| 1.56
|
| 23.56
| CN
| 25
| 0
|
| 25.00
| DE
| 23
| 0
|
| 23.00
| DC
| 23.5
| 10.3
|
| 33.80
| FL
| 4
| 31.5
|
| 35.50
| GA
| 29.1
| 0.75
|
| 29.85
| HI
| 16
| 2.5
|
| 18.50
| ID
| 32
| 1
|
| 33.00
| IL
| 39.2
| 19.1
|
| 58.30
| IN
| 32
| 18.3
|
| 50.30
| IA
| 30
| 0
|
| 30.00
| KN
| 24
| 1.03
|
| 25.03
| KY
| 24.6
| 1.4
|
| 26.00
| LA
| 20
| 0.93
|
| 20.93
| ME
| 30
| 1.4
|
| 31.40
| MD
| 27.1
| 9.19
|
| 36.29
| MA
| 24
| 2.98
|
| 26.98
| MI
| 27.2
| 18.5
|
| 45.70
| MN
| 28.5
| 0.1
|
| 28.60
| MS
| 18
| 0.4
|
| 18.40
| MO
| 19.5
| .42
|
| 19.92
| MT
| 32.5
| .75
|
| 33.25
| NE
| 24.8
| 0.9
|
| 25.00
| NH
| 22.2
| 1.63
|
| 23.83
| NJ
| 10.5
| 31.95
|
| 42.45
| NM
| 17
| 1.88
|
| 18.88
| NY
| 8
| 25.68
|
| 33.68
| NC
| 38.5
| 0.25
|
| 38.75
| ND
| 23
| 0.03
|
| 23.03
| OH
| 38.5
| 0
|
| 23.03
| OK
| 19
| 1
|
| 20.00
| OR
| 38
| 0
|
| 38.00
| PA
| 57.6
| 1.1
|
| 58.70
| RI
| 34
| 1.12
|
| 35.12
| SC
| 26
| 0.75
|
| 26.75
| SD
| 28
| 2
|
| 30.00
| TN
| 26
| 1.4
|
| 27.40
| TX
| 20
| 0
|
| 20.00
| UT
| 31.9
| 0.65
|
| 32.55
| VT
| 12.1
| 20.04
|
| 32.14
| VA
| 26.2
| 0.79
|
| 34.14
| WA
| 49.4
| 2.82
|
| 52.22
| WV
| 20.5
| 15.2
|
| 35.70
| WI | 30.9
| 2
|
| 32.90
| WY | 23
| 1
|
| 24.00
|
|
|
|
Post by MTwomn on May 5, 2022 1:10:09 GMT -5
Without looking at inflation-adjusted prices it is difficult to see where gasoline prices actually stand.
In 1918 gasoline was $0.25 a gallon or in 2022 dollars $4.76. In 1931 gasoline was $0.30 a gallon or in 2022 dollars $5.67. In 1940 gasoline was $0.18 a gallon or in 2022 dollars $3.70. In 1957 gasoline was $0.31 a gallon or in 2022 dollars $3.17. In 1970 gasoline was $0.36 a gallon or in 2022 dollars $2.67. In 1981 gasoline was $1.35 a gallon or in 2022 dollars $4.27. In 1998 gasoline was $1.01 a gallon or in 2022 dollars $1.77. In 2016 gasoline was $2.07 a gallon or in 2022 dollars $2.48. In 2019 gasoline was $2.25 a gallon or in 2022 dollars $2.53. In 2020 gasoline was $2.58 a gallon or in 2022 dollars $2.27. In 2021 gasoline was $2.91 a gallon or in 2022 dollars $3.04
To look at the true cost you should also calculate in mpg. Generally in 1931 cars did not get as good of gas mileage as current cars.
The inflation calculator I used was updated in March 2022. So the inflation in the past month would make little difference in these numbers.
|
|
|
Post by Fire21 on May 5, 2022 10:14:02 GMT -5
With electric vehicles being pushed on us, where does that leave the various state and federal tax collections as gasoline usage supposedly decreases? Is there a "gas" tax on charging EVs?
|
|