Fuel taxes in the United States
Encyclopedia
The United States federal excise tax on gasoline, as of February 2011, is 18.4¢/gal and 24.4¢/gal for diesel fuel. In January 2011, motor gasoline taxes averaged 48.1¢/gal and diesel fuel taxes averaged 53.1¢/gal, which accounted for 14% of the price of gasoline and 15% of the price of diesel.
As of July 2009, the average state gasoline tax in the United States
is 28.6¢/gal, plus 18.4¢/gal federal tax making the total 47¢/gal . For diesel, the average state tax is 27¢/gal plus an additional 24.4¢/gal federal tax making the total 51.4¢/gal.
. It was a 1¢/gal (0.3¢/L) tax. In the following decade, all of the U.S. states (48 at the time), along with the District of Columbia
, introduced a gasoline tax. By 1939, an average tax of 3.8¢/gal (1¢/L) of fuel was levied by the individual states.
The fuel tax in Texas is currently set at 20¢/gal since it was raised to that amount in 1991. In May 2007, the Texas House of Representatives
unanimously voted to pass a 'gas-tax relief' measure for the 2007 summer driving period. The measure was not passed by the Texas Senate
.
with a tax of 1¢/gal (0.3¢/L). The U.S. federal gasoline tax was 18.4¢/gal (4.86¢/L), and the gasoline taxes in the various states range from 10 cents to 33 cents, with an average about 22¢/gal (5.8¢/L), making the average combined tax on gasoline 42¢/gal (11¢/L). Unlike most other goods in the US, the price displayed includes all taxes, rather than being calculated at the point of purchase.
Then-Secretary of Transportation
Mary Peters
stated on August 15, 2007 that about 60% of federal gas taxes are used for highway and bridge construction. The remaining 40% goes to earmarked programs. However, revenues from other taxes are also used in federal transportation programs.
An increased cost of fuel would also encourage less consumption. A growing fiscal and national security concern is America's dependence on foreign oil. Americans sent nearly $430 billion to other countries in 2008 for the cost of imported oil.
aircraft) is taxed at 19.4¢/gal as of 2011.
Jet fuel (called "kerosene for aviation" by the IRS) is taxed at 21.9¢/gal for the 2007 tax year unless it is used for commercial aviation (airlines such as American Airlines and US Airways and small chartered commercial jets). Because such commercial operations are subject to the federal transportation tax, they are subject to a reduced fuel tax of 4.4¢/gal. A bill has been introduced by Sen. Jay Rockefeller (D-W.Va.)
and Sen. Trent Lott (R-Miss.)
that would completely eliminate the tax paid by commercial jets, while more than doubling the tax on non-commercial jet fuel users to 49¢/gal.
These taxes mainly fund airport and Air Traffic Control operations by the Federal Aviation Administration
(FAA), of which commercial aviation is the biggest user.
As of July 2009, the average state gasoline tax in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
is 28.6¢/gal, plus 18.4¢/gal federal tax making the total 47¢/gal . For diesel, the average state tax is 27¢/gal plus an additional 24.4¢/gal federal tax making the total 51.4¢/gal.
State taxes
The first US state tax on fuel was introduced in February 1919 in OregonOregon
Oregon is a state in the Pacific Northwest region of the United States. It is located on the Pacific coast, with Washington to the north, California to the south, Nevada on the southeast and Idaho to the east. The Columbia and Snake rivers delineate much of Oregon's northern and eastern...
. It was a 1¢/gal (0.3¢/L) tax. In the following decade, all of the U.S. states (48 at the time), along with the District of Columbia
Washington, D.C.
Washington, D.C., formally the District of Columbia and commonly referred to as Washington, "the District", or simply D.C., is the capital of the United States. On July 16, 1790, the United States Congress approved the creation of a permanent national capital as permitted by the U.S. Constitution....
, introduced a gasoline tax. By 1939, an average tax of 3.8¢/gal (1¢/L) of fuel was levied by the individual states.
The fuel tax in Texas is currently set at 20¢/gal since it was raised to that amount in 1991. In May 2007, the Texas House of Representatives
Texas House of Representatives
The Texas House of Representatives is the lower house of the Texas Legislature. The House is composed of 150 members elected from single-member districts across the state. The average district has about 150,000 people. Representatives are elected to two-year terms with no term limits...
unanimously voted to pass a 'gas-tax relief' measure for the 2007 summer driving period. The measure was not passed by the Texas Senate
Texas Senate
The Texas Senate is the upper house of the Texas Legislature. There are 31 members of the Senate, representing 31 single-member districts across the state with populations of approximately 672,000 per constituency. There are no term limits, and each term is four years long. The Senate meets at the...
.
| State | Gasoline tax (includes federal tax of 18.4¢/gal) | Diesel tax (includes federal tax of 24.4¢/gal) |
|---|---|---|
| US average | 47.0 | 51.4 |
| Alabama | 39.4 | 46.3 |
| Alaska | 18.4 | 24.4 |
| Arizona | 37.4 | 43.4 |
| Arkansas | 40.2 | 47.2 |
| California | 64.5 | 68.9 |
| Colorado | 40.4 | 44.9 |
| Connecticut | 59.3 | 69.5 |
| Delaware | 41.4 | 46.4 |
| District of Columbia | 38.4 | 44.4 |
| Florida | 52.9 | 54.2 |
| Georgia | 31.4 | 37.3 |
| Hawaii | 62.7 | 70.8 |
| Idaho | 43.4 | 49.4 |
| Illinois | 57.2 | 64.4 |
| Indiana | 52.2 | 65.9 |
| Iowa | 40.4 | 47.9 |
| Kansas | 43.4 | 51.4 |
| Kentucky | 40.9 | 43.9 |
| Louisiana | 38.4 | 44.4 |
| Maine | 49.4 | 56.6 |
| Maryland | 41.9 | 48.7 |
| Massachusetts | 41.9 | 47.9 |
| Michigan | 53.1 | 55.1 |
| Minnesota | 45.6 | 51.6 |
| Mississippi | 37.2 | 43.2 |
| Missouri | 35.7 | 41.7 |
| Montana | 46.2 | 53.0 |
| Nebraska | 45.7 | 51.7 |
| Nevada | 51.5 | 53.0 |
| New Hampshire | 38.0 | 44.0 |
| New Jersey | 32.9 | 41.9 |
| New Mexico | 37.2 | 47.2 |
| New York | 63.4 | 67.7 |
| North Carolina | 48.6 | 54.6 |
| North Dakota | 41.4 | 47.4 |
| Ohio | 46.4 | 52.4 |
| Oklahoma | 35.4 | 38.4 |
| Oregon | 48.4 | 54.4 |
| Pennsylvania | 50.7 | 63.6 |
| Rhode Island | 51.4 | 57.4 |
| South Carolina | 35.2 | 41.2 |
| South Dakota | 42.4 | 48.4 |
| Tennessee | 39.8 | 42.8 |
| Texas | 38.4 | 44.4 |
| Utah | 42.9 | 48.9 |
| Vermont | 41.7 | 50.4 |
| Virginia | 37.8 | 43.8 |
| Washington | 55.9 | 61.9 |
| West Virginia | 50.6 | 56.5 |
| Wisconsin | 51.3 | 57.3 |
| Wyoming | 32.4 | 38.4 |
Federal taxes
The first federal gasoline tax in the United States was created on June 6, 1932 with the enactment of the Revenue Act of 1932Revenue Act of 1932
The Revenue Act of 1932 raised United States tax rates across the board, with the rate on top incomes rising from 25 percent to 63 percent...
with a tax of 1¢/gal (0.3¢/L). The U.S. federal gasoline tax was 18.4¢/gal (4.86¢/L), and the gasoline taxes in the various states range from 10 cents to 33 cents, with an average about 22¢/gal (5.8¢/L), making the average combined tax on gasoline 42¢/gal (11¢/L). Unlike most other goods in the US, the price displayed includes all taxes, rather than being calculated at the point of purchase.
Then-Secretary of Transportation
United States Secretary of Transportation
The United States Secretary of Transportation is the head of the United States Department of Transportation, a member of the President's Cabinet, and fourteenth in the Presidential line of succession. The post was created with the formation of the Department of Transportation on October 15, 1966,...
Mary Peters
Mary Peters (politician)
Mary E. Peters served as the United States Secretary of Transportation under President George W. Bush from 2006 to 2009. She is the second woman to hold the position.-Public service career:...
stated on August 15, 2007 that about 60% of federal gas taxes are used for highway and bridge construction. The remaining 40% goes to earmarked programs. However, revenues from other taxes are also used in federal transportation programs.
Federal tax revenues
The federal gasoline tax raised $25 billion on gasoline in 2006. The tax was last raised in 1993, and is not indexed to inflation. The federal gas tax has experienced a cumulative loss in purchasing power of 33 percent since 1993. An increase of 10¢/gal would bring approximately $20 billion of annual revenue into the Highway Trust Fund.Public policy
Some policy experts believe that an increased tax is needed to fund and sustain our transportation infrastructure. The National Surface Transportation Infrastructure Financing Commission issued a detailed report in February 2009.An increased cost of fuel would also encourage less consumption. A growing fiscal and national security concern is America's dependence on foreign oil. Americans sent nearly $430 billion to other countries in 2008 for the cost of imported oil.
Aviation fuel taxes
Aviation gasoline (most often used to fuel small General AviationGeneral aviation
General aviation is one of the two categories of civil aviation. It refers to all flights other than military and scheduled airline and regular cargo flights, both private and commercial. General aviation flights range from gliders and powered parachutes to large, non-scheduled cargo jet flights...
aircraft) is taxed at 19.4¢/gal as of 2011.
Jet fuel (called "kerosene for aviation" by the IRS) is taxed at 21.9¢/gal for the 2007 tax year unless it is used for commercial aviation (airlines such as American Airlines and US Airways and small chartered commercial jets). Because such commercial operations are subject to the federal transportation tax, they are subject to a reduced fuel tax of 4.4¢/gal. A bill has been introduced by Sen. Jay Rockefeller (D-W.Va.)
Jay Rockefeller
John Davison "Jay" Rockefeller IV is the senior United States Senator from West Virginia. He was first elected to the Senate in 1984, while in office as Governor of West Virginia, a position he held from 1977 to 1985...
and Sen. Trent Lott (R-Miss.)
Trent Lott
Chester Trent Lott, Sr. , is a former United States Senator from Mississippi and has served in numerous leadership positions in the House of Representatives and the Senate....
that would completely eliminate the tax paid by commercial jets, while more than doubling the tax on non-commercial jet fuel users to 49¢/gal.
These taxes mainly fund airport and Air Traffic Control operations by the Federal Aviation Administration
Federal Aviation Administration
The Federal Aviation Administration is the national aviation authority of the United States. An agency of the United States Department of Transportation, it has authority to regulate and oversee all aspects of civil aviation in the U.S...
(FAA), of which commercial aviation is the biggest user.
See also
- Federal Highway Trust Fund (United States)Federal Highway Trust Fund (United States)The United States Highway Trust Fund is a transportation fund which receives money from a federal fuel tax of 18.4 cents per gallon on gasoline and 24.4 cents per gallon of diesel fuel and related excise taxes...
- Gas tax holidayGas tax holidayIn United States politics, the gas tax holiday or the gas tax loophole is a proposal made by presidential contenders Arizona Senator John McCain and New York Senator Hillary Rodham Clinton to suspend the federal excise tax on gasoline from Memorial Day to Labor Day in the year 2008...
- National Association of Convenience StoresNational Association of Convenience StoresNACS is an international trade association representing the convenience and fuel retailing industry.-Background:NACS was founded August 14, 1961, as the National Association of Convenience Stores. It is an international trade association representing more than 2,100 retail and 1,500 supplier...