Gas Tax Increases at State Level

While Congress and the president spin their wheels about infrastructure spending, the states are not waiting for them. Is this by design? Here is an update:

CaliforniaThe gas tax will rise by 5.6 cents per gal. under the last stage of an increase approved by lawmakers in 2017.

ConnecticutThe diesel tax rate will increase by 2.6 cents per gal. because the tax rate is designed to vary alongside changes in average fuel prices.

IllinoisThe gas tax will rise by 19 cents and the diesel tax by 24 cents under legislation enacted earlier this year.

IndianaThe gas tax will rise by 0.5 cents while the diesel tax will rise by 1 cent.

Maryland: Gas and diesel taxes will each rise by 1.4 cents per gal. because of a formula implemented in 2013 that ties the tax rate to increases in the rate of inflation and in the price of motor fuel.

MichiganGas and diesel tax rates vary each month in Michigan alongside changes in the price of fuel. On July 1, the gas tax increased by 0.1 cents and the diesel tax by 0.2 cents.

MontanaGas taxes are rising by 0.5 cents and diesel taxes by 0.2 cents because of a phased-in tax increase enacted in 2017.

Nebraska: Gas and diesel tax rates will increase by 0.1 cents under a formula that considers both fuel prices and the legislature’s infrastructure spending decisions.

OhioGas taxes will rise by 10.5 cents and diesel taxes by 19 cents per gal. under an increase enacted earlier this year.

Rhode IslandGas and diesel tax rates will each rise by 1 cent per gal. under an indexing formula enacted in 2014.

South Carolina: Gas and diesel tax rates will each rise by 2 cents per gal. under the third stage of a six-part increase.

Tennessee: The gas tax will rise by 1 cent while the diesel tax will increase by 3 cents.

Vermont: The gas tax will rise by 0.55 cents while the diesel tax rate will remain unchanged.

There is a regressive element in Congress that wants to push everything down to the states and defederalize almost everything. As far as gas taxes, they are getting their way.

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