APPENDIX A.  MOTOR FUEL TAX RATES

State

Gasoline (cpg)

Diesel (cpg)

Gasohol (cpg)

Notes

Alabama

18.0

19

18

Includes a 2 cpg inspection fee.  Counties can levy additional motor fuel taxes up to 5 cpg with approval from the state legislature.  Cities can levy additional taxes up to 4 cpg with approval from the county.  An additional 1 cpg environmental transportation fee is levied at the wholesale level to cover remediation costs.

Alaska

8

8

8

The law provides a .06 cpg tax credit for gasohol used during a mandated control period in a CO non-attainment area.

Arizona

18

18

18

Certain commercial vehicles and commercial motor carriers may pay additional taxes.  Use class vehicles pay an additional 9 cpg on diesel with an exemption for vehicles under 26,000 pounds.

Arkansas

21.5

22.5

21.5

In addition, the state assesses a .2 cpg environmental assurance fee at the wholesale level for its underground storage tank fund.

California

18

18

18

In addition to the excise tax, the state levies a 6 percent sales tax. County and local governments may assess additional sales taxes. The state also assess a 1.2 cpg state UST fee.

Colorado

22

20.5

22

 

Connecticut

25

26

25

The state assesses an additional 5.8 percent gross receipts tax at the wholesale level.  The gross receipts tax will gradually in-crease to 8.1 percent by July 1, 2013.

Delaware

23

22

23

The state assess an additional .9 percent gross receipts tax at the wholesale level for the state hazardous substance cleanup fund.

Florida

14.9

27.9

14.9

The state indexes its gas tax against inflation.  The statewide gasoline tax includes a 10.9 cpg sales tax and a 4 cpg excise tax. This figure does not include a 2.2 cpg environmental inspection fee.  The gasoline tax figure also does not reflect local or federal taxes on motor fuels. The diesel tax rate is flat across the state and includes an excise tax, a sales tax and various local option taxes.

Georgia

7.5

7.5

7.5

The state also assesses a 4 percent sales tax.  Local option sales taxes can range from 1 percent to 4 percent.

Hawaii

16

16

16

The state assesses an additional 4 percent sales tax and a 0.12 cpg environmental response tax. Additional local option taxes, which range from 8.8 cpg to 18 cpg, may also apply.  Effective April 2, 2006 gasoline sold in the state must contain 10 percent ethanol. Ethanol-blended gasoline is exempt from the 4 percent sales tax.

Idaho

25

25

22.5

 

Illinois

19

21.5

19

The state also assesses a 6.25 percent sales tax and a $0.003 per gallon UST fund tax.  Diesel taxes are 27.5 cpg for commercial highway users.

Indiana

18

16

18

The state also assesses a 6 percent sales tax and a $0.008 per gallon inspection fee.  For diesel, the state also levies a 11 cpg surcharge paid on a quarterly self-reporting basis.

Iowa

20.7

22.5

19

The state also levies a 1 cpg UST fee.  Iowa computes its rate on gasoline based on sales of ethanol blended fuels.  June 30, 2006, the 20.7 cpg rate on gasoline could change based on the rate of sales of ethanol blended fuels in 2005.

Kansas

24

26

24

 

Kentucky

18.5

13.1

18.5

The rate is variable based on 9 percent of the average wholesale price of gasoline with a minimum price of $1.22 or 11 cpg. The state also collects a 1.4 cpg UST fee and 5 cpg supplemental highway user tax.  The state assesses a 2 cpg supplemental high-way user tax for special fuels.

Louisiana

20

20

20

 

Maine

25.9

27

25.9

For gasoline, the state also levies a .07 cpg tax for the Coastal and Inland Water fund, a 1.38 cpg tax for the Groundwater Fund and 40 cpg/10,000 gallons for Petroleum Market Share Act. For diesel, the state assesses a .07 cpg tax for the Coastal and Inland Water Fund and a .6 cpg tax for the Groundwater fund. In 2002, the state passed a law that indexes the gas tax to inflation.

Maryland

23.5

24.25

23.5

 

Massachusetts

23.5

23.5

23.5

Includes a 2.5 cpg UST fund tax.

Michigan

19

15

19

The state also assesses a 6 percent sales tax and a 0.875 cpg environmental regulation fee for a refined petroleum fund.

Minnesota

20

20

20

The state sometimes assesses a 2 cpg UST cleanup fee that depends on the balance in the UST fund.

Mississippi

18

18

18

The state also assesses a 0.4 cpg Environmental Protection Fee.

Missouri

17

17

17

The state also assesses a .05 cpg agriculture inspection fee and a .5 cpg transportation load fee.  A 6 cpg temporary tax increase adopted in 1992 will expire in 2008.

Montana

27

27.75

27

The state also assesses a 0.75 cpg fee at the pump for a state cleanup fund.

Nebraska

26.1

26.1

26.1

These rates include a 12.5 cpg base and a 13.6 cpg variable rate. The variable rate component increased from 12.8 cpg to 13.6 cpg for the period January 1, 2006 through June 30, 2006.  The state also assesses a 0.9 cpg release prevention fee for gasoline and a 0.3 cpg release prevention fee for diesel and other fuels.

Nevada

23

27

24

Drivers must also pay a 10 cpg county tax on gasoline.  The state assesses an additional 0.75 cpg cleanup fee and a 0.55 cpg inspection fee.

New Hampshire

18

18

18

The state also assesses a 0.1 cpg fee for an oil pollution control fund, a 1.5 cpg fee for UST cleanup, a 1 cpg fee for AST and a bulk storage fund, and 2 cpg for fuel oil and bulk fuel oil storage.

New Jersey

14.5

17.5

14.5

This rate includes a 4 cpg Petroleum Products Gross Receipts Tax.

New Mexico

17

18

17

The state also assesses a 1.9 cpg petroleum loading fee.

New York

23.9

22.15

23.9

The State rate includes a 8 cpg excise tax, a Petroleum Business Tax of 15.9 cpg on gasoline and a 14.15 cpg tax on diesel.  The state also assesses a 0.3 cpg spill tax on gasoline and diesel and a petroleum-testing fee of 0.05 cpg  on gasoline.  The state charges a statewide volume weighted average sales and use tax of 4 percent and counties charge sales and use taxes between 3.25 percent and 5.75 percent.  The taxes are based on an average price of $2.69/gallon for gasoline and $2.76/gallon for diesel and amount to an additional tax of 21.52 cpg for gasoline and 22.08 for diesel.

North Carolina

29.9

29.9

29.9

The state also assesses a 0.25 cpg inspection tax. The overall rate consists of a 17.5 cpg flat rate plus a variable rate of 12.4 cpg wholesale component based on 7 percent of the average whole-sale price over a specified period.

North Dakota

23

23

23

 

Ohio

28

28

28

The state also assesses a 3 cpg surcharge for commercial vehicles.

Oklahoma

16

13

16

The state also assesses a 1 cpg UST fee.

Oregon

24

24

24

Counties have the option to assess additional taxes on gasoline ranging from 1 cpg to 3 cpg.  Cities have the option to assess additional taxes on gasoline that range from 1 cpg to 5 cpg.

Pennsylvania

31.2

38.1

31.2

These rates include excise taxes on motor fuels, a 1.1 cpg fee on gasoline going into USTs, a 19.2 cpg oil company franchise tax on liquid fuels (primarily gasoline) and 26.1 cpg oil company franchise tax on fuels (primarily diesel) and a 12 cpg liquid fuels tax.  The oil franchise tax is based on the average wholesale price of gasoline during a 1-year period and revised annually.

Rhode Island

30

30

30

These rates include a 3 cpg wholesale distributor tax.  The state also assesses a 1 cpg environmental protection regulatory fee for the UST program.

South Carolina

16

16

16

The state also assesses a 0.25 cpg inspection fee and a 0.50 cpg environmental fee for UST cleanup.

South Dakota

22

22

20

 

Tennessee

20

18

20

The state also levies a 1 cpg petroleum tax for gasoline and a 0.4 cpg environmental assurance fee.

Texas

20

20

20

 

Utah

24.5

24.5

24.5

 

Vermont

19

25

19

The state also assesses a 1 cpg license fee for the UST fund.

Virginia

17.5

16

17.5

The state also levies a 0.6 cpg petroleum storage tank fee. Localities that are part of the Northern Virginia Transportation District or border the District levy a 2 percent sales tax on motor fuels.

Washington

31

31

31

Legislation passed in 2005 will increase rates 3 cpg July 1, 2006, 2 cpg July 1, 2007 and 1.5 cpg July 1, 2008.

West Virginia

20.5

20.5

20.5

The state also assesses a 5 percent variable wholesale tax based on the statewide average wholesale price of gasoline with a mini-mum price of $1.30/gallon. The tax in January, 2006 was 6.5 cpg.

Wisconsin

32.9

32.9

32.9

The state tax includes a 3 cpg UST that will be reduced to 1 cpg April 1, 2006. The tax is indexed to inflation rates, but indexing will end April 1, 2007.

Wyoming

14

14

14

Includes 13 cpg base rate plus 1 cpg tax for environmental cleanup costs.

Sales taxes-10 states levy motor fuel sales taxes. These include California, Delaware, Georgia, Hawaii, Illinois, Indiana, Kentucky, Michigan, New York and West Virginia.

Variable or indexed rates-7 states link rates to inflation or other measures.  These include Florida, Iowa, Kentucky, Maine, Nebraska and North Carolina.  In 2005, Wisconsin lawmakers repealed a provision that links fuel tax rates to inflation rates.  The repeal will take effect April 1, 2007.

Key: cpg = cents per gallon

•  UST = Underground Storage Tank

•  LUST = Leaking Underground Storage Tank

Sources: Federation Tax Administrators; American Petroleum Institute; NCSL, January 2006.