State taxes, assorted fuel fees, drive up cost of a gallon of gas
Wednesday, August 28, 2013
Are you taking a road trip this Labor Day weekend? You'll pay more for gas if you're traveling in one of these 10 states: California, Connecticut, Florida, Hawaii, Illinois, Indiana, Michigan, New York, North Carolina and Washington.
Those states, according to the American Petroleum Institute's July 2013 report (the oil industry trade group updates its data quarterly), top the list of taxes added to the pump price of gasoline.
The listing above is alphabetical. Here's how they line up when you sort them based on the taxes charged per gallon of gas:
- California, total gas taxes = 71.9 cents per gallon (cpg)
- Hawaii = 69.0 cpg
- New York = 68.25 cpg
- Connecticut = 67.7 cpg
- Michigan = 57.9 cpg
- Illinois = 57.5 cpg
- Indiana = 57.3 cpg
- North Carolina = 56.3 cpg
- Washington = 55.9 cpg
- Florida = 53.8 cpg
The gas tax amounts above are the combined federal gasoline excise tax of 18.4 cpg and the added taxes and other fees that states assess in connection with the fuel.
The national average of combined gas taxes in the API's latest analysis is 49.4 cpg. Nineteen states have federal, state and local taxes and fees that are greater than that average.
Federal gas tax: Some quick notes about the federal gas tax, which first appeared in 1932 as a way to fight growing deficits.
In the first year of existence, the Internal Revenue Service reported that it generated $125 million tax dollars, nearly 8 percent of all federal revenue. Since its inception, the gas excise tax has increased 10 times. The most recent hike was in 1993 when it was set at the current 18.4 cpg rate.
But while Uncle Sam has been holding the gas tax line, states regularly tweak their assorted fuel-related charges.
Those charges, as noted in Bankrate.com's slide show look at the top 10 gas tax states, contribute to the price we pay at the pump. That listing also is the Weekly Tax Tip.
State taxes only: The midyear evaluation by the American Petroleum Institute put California at the front of the gas tax parade.
It is indeed the Golden State's gasoline excise tax, which increased 3.5 cents to 39.5 cpg on July 1, that helped it earn this current dubious honor.
But 39.5 cents plus the federal 18.4-cent tax only adds up to 57.9 cpg. The other 14 cpg comes, in part, from California sales taxes and a 2 cpg state underground storage tank, or UST, fee.
Those taxes are enough to help make California the state with the second-highest cost for operating a car.
Sometimes those other taxes and fees really add up.
Take Florida. It made the top 10 gas tax list, but when compared to the other 49 states and the District of Columbia, its gas excise tax of 4 cpg comes in dead last. The Sunshine State, however, adds another 31.4 cents to each gallon of gas bought in there.
The added charge comes from the state's sales tax, county option taxes, additional local option taxes and the State Comprehensive Enhanced Transportation System Tax, or SCETS.
State gas taxes only: The list below provides a look at how the states rank (July 2013 data) as far as just their excise tax on gasoline.
| 1. California 39.5 cpg |
14. Idaho 25.0 cpg |
27. Massachusetts 21.0 cpg |
40. New Mexico 17.0 cpg |
| 2. North Carolina 37.6 cpg |
15. Connecticut 25.0 cpg |
28. West Virginia 20.5 cpg |
41. Missouri 17.0 cpg |
| 3. Washington 37.5 cpg |
16. Utah 24.5 cpg |
29. Louisiana 20.0 cpg |
42. Alabama 16.0 cpg |
| 4. Rhode Island 32.0 cpg |
17. Kansas 24.0 cpg |
30. Tennessee 20.0 cpg |
43. Oklahoma 16.0 cpg |
| 5. Kentucky 30.9 cpg |
18. Washington, D.C. 23.5 cpg |
31. Texas 20.0 cpg |
44. South Carolina 16.0 cpg |
| 6. Wisconsin 30.9 cpg |
19. Delaware 23.0 cpg |
32. Illinois 19.0 cpg |
45. Virginia 14.8 cpg |
| 7. Maine 30.0 cpg |
20. Nevada 23.0 cpg |
33. Michigan 19.0 cpg |
46. Pennsylvania 12.0 cpg |
| 8. Oregon 30.0 cpg |
21. North Dakota 23.0 cpg |
34. Vermont 18.2 cpg |
47. New Jersey 10.5 cpg |
| 9. Minnesota 28.5 cpg |
22. Wyoming 23.0 cpg |
35. Indiana 18.0 cpg |
48. New York 8.1 cpg |
| 10. Ohio 28.0 cpg |
23. Colorado 22.0 cpg |
36. New Hampshire 18.0 cpg |
49. Alaska 8.0 cpg |
| 11. Maryland 27.4 cpg |
24. South Dakota 22.0 cpg |
37. Hawaii 17.0 cpg |
50. Georgia 7.5 cpg |
| 12. Montana 27.0 cpg |
25. Arkansas 21.5 cpg |
38. Arizona 18.0 cpg |
51. Florida 4.0 cpg |
| 13. Nebraska 26.3 cpg |
26. Iowa 21.0 cpg |
39. Mississippi 18.0 cpg |
cpg = cents per gallon |
The average state gasoline excise tax the second quarter of 2013 is 20.9 cpg, according to API, up 0.3 cpg from the first quarter analysis done in April. That puts Iowa and Massachusetts, each with a 21 cpg state gas tax, and West Virginia with its 20.5 tax on either side of the break point.
Other levies -- applicable sales taxes, gross receipts taxes, oil inspection fees, county and local taxes, underground storage tank fees and other miscellaneous environmental fees -- came to 9.7 cpg nationwide in the second quarter of the year, unchanged from January's numbers.
Before you head out or while you're on the road, Gas Buddy and Mapquest can help you find the best pump price bargains.
As you watch the dollar amount roll by while you fill up, you can ponder the tax component.
Gas taxes also could be a more fun part of your end-of-summer travels. Use the tax data as a new road trip game, such as car bingo, with the kids to enhance their math skills before the new school year kicks in in earnest.
You also might find these items of interest:
Comments