Fuel tax rate changes in six states in effect for 2018

January 3, 2018

Keith Goble

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As the calendar flips to the new year, fuel tax rates are changing in several states.

During the past year, about a dozen states have instituted changes. Adjustments range from increases of at least 20 cents per gallon in California and New Jersey to fractional changes in other states.

The most notable change for the beginning of 2018 is occurring in Oregon. Following statehouse passage of a 10-year, $5.3 billion transportation bill, a 4-cent increase in the state’s 30-cent fuel tax rate is now in place.

For professional drivers, proportionate increases are applied to the weight-mile tax, trip permits, and variance permits. The 16.38-cent per mile tax on large trucks increases to 20.48 cents.

The state of Nebraska has implemented another round of fuel tax increases. The change marks the third of a four-step increase over four years. The state’s 27-cent-per-gallon fuel tax increased by 1.4 cents to 28.4 cents. In place since 2016, one more increase of 1.5 cents will take effect in January 2019.

Changes to the North Carolina fuel tax rate continue. A 2015 state law implemented a new fuel tax formula adjusted annually. The formula is based on a statutory formula that takes into consideration state population and energy cost inflation.

Since the first adjustment one year ago, the tax rate has increased from 34.3 cents to 35.1 cents. The rate is expected to reach about 36 cents per gallon in 2019.

Automatic adjustments to the fuel tax also resulted in modest increases in neighboring Georgia and in Florida.

The Georgia tax rate is up from 26.3 cents per gallon to 26.8 cents for gas and from 29.4 cents per gallon to 30 cents for diesel. Florida’s tax is up from 30.9 cents per gallon to 31.4 cents for gas and from 31.8 cents to 32.3 cents for diesel.

Breaking from the trend, New York will see a price reduction of 0.8 cents per gallon. According to the American Petroleum Institute, the price break comes three months after the Empire State increased the gas tax by 0.54 cents and the diesel tax by 2.91 cents.