Fuel rate changes hit several states in July

August-September 2020

Keith Goble

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July 1 marked changes in fuel tax collections in nine states from California to Connecticut. The tax rate changes range from a 5-cent increase on gas in Virginia to fractional price changes for gas and diesel in Illinois and Maryland.

California

Another fuel rate increase in California took effect in July.

Excise tax collected on gas purchases has been set at 47.3 cents and the diesel rate at 36 cents.

The gas rate now is up 3.2 cents per gallon to 50.5 cents.

The diesel tax in the Golden State is up 2.5 cents per gallon to 38.5 cents.

With the exception of the tax on diesel fuel sales, all tax and fee rates also are indexed to inflation starting July 1.

Connecticut

The state’s diesel tax rate is headed down. The 46.5-cent excise rate decreased by 1.9 cents to 44.6 cents per gallon.

The gas tax remains unchanged at 25 cents.

Illinois

Fuel tax rates in Illinois are up for the second year in a row. The boost, however, is much less severe from one year ago.

As a result of a $45 billion capital plan approved a year ago by the General Assembly, the state gas and diesel taxes were doubled. Since then, the gas rate has been set at 38 cents and the diesel rate at 45.5 cents.

Starting July 1, the gas and diesel taxes are up 0.7 cents to 38.7 cents and 46.2 cents.

Indiana

The state of Indiana’s fuel tax rates also are on the rise. A 2017 state law increased the gas and diesel rates by 10 cents to 28 cents. Tax rates were also indexed on an annual basis through 2024.

As a result, this year’s increase for gas is up one penny to 31 cents. The diesel rate is up 2 cents to 51 cents.

Iowa

July 1 in Iowa marked a change in the rate of the gas tax. The 30.5-cent gas tax rate dipped one-half cent to 30 cents.

The 32.5-cent diesel rate is unchanged.

Maryland

Fuel tax rates in Maryland are dipping. Specifically, the gas tax is reduced by 0.7 cents and the diesel rate is trimmed by 0.4 cents.

The changes are due to a six-year-old inflation indexing law. The gas tax now is set at 36.3 cents while the diesel rate is 37 cents.

Nebraska

A fuel tax increase also was imposed in Nebraska.

The 29.3-cent gas and diesel rate increased by 3.9 cents to 33.2 cents. The change is due to a law linking the state rates to the price of fuel.

The increase in the state’s tax rates is a result of a six-month adjustment in the wholesale tax rate.

Another recalculation is set for Jan. 1.

South Carolina

The 22-cent diesel and gas excise rate collected in South Carolina is up once again by 2 cents. The change to 24 cents follows a 2017 state law to impose increases of 2 cents annually through 2022. At that time, the tax rate will top out at 28 cents.

Virginia

Virginia’s gas rate has increased. The 16.2-tax rate is up one nickel to 21.2 cents.

The 20.2-cent diesel rate, however, is unchanged.

The rate change for gas is the first of a two-part tax increase. In July 2021, the gas tax will be raised an additional 5 cents to 26.2 cents per gallon.

At that time, the diesel rate will be increased 6.8 cents to 27 cents per gallon.

Starting July 1, 2022, both tax rates will be indexed to annual changes in the consumer price index. LL

Keith Goble

Keith Goble has been covering trucking-related laws since 2000. His daily web reports, radio news and “OOIDA’s State Watch” in Land Line Magazine are the industry’s premier sources for information regarding state legislative affairs.