In its 15th annual survey on federal transportation tax revenue, San José State University’s Mineta Transportation Institute asked Americans about their views on various fuel tax increases and new mileage fees. A majority is open to certain mileage fees, but nearly three-quarters support a fuel tax increase under specific conditions.

Survey respondents were asked if they support a 10-cent increase to the current 18-cent federal gas tax. They were given six scenarios on how the revenue would be used:

• General transportation
• Reducing local air pollution from transportation
• Decreasing the transport system’s contribution to global warming
• Maintaining streets, roads, and highways
• Reducing accidents and improving safety
• Reducing traffic congestion

Only 35% support a fuel tax increase for general transportation. However, support jumps to over 70% if the revenue is allocated for road maintenance or improving safety. Around 60% support a tax increase if the funds address environmental issues or congestion.

People are less enthusiastic about a mileage fee. Respondents were asked about replacing the federal fuel tax with a mileage-based fee. Only 39% support a flat-rate fee of 3 cents per mile for all vehicles. However, half favor a variable green-rate fee, where the average rate is 3 cents per mile, with lower rates for less polluting vehicles and higher rates for more polluting ones.

Support for both a flat-rate and green-rate fee has significantly increased since 2010. Back then, only 22% supported a flat-rate fee, and 34% supported a green-rate fee.

The survey also shows more support for a mileage fee on top of the federal fuel tax for commercial vehicles. Nearly 60% support an additional mileage fee for truckers, and 53% are okay with an additional fee for taxis and ride-hailing services like Uber and Lyft.

There isn’t much support for giving electric vehicles preferential treatment. Nearly half of respondents believe electric vehicles should be charged the same mileage fee as fossil fuel-powered vehicles.

If a mileage fee were implemented, people prefer incremental payments. Nearly half favor paying each time they fuel up or charge, about a third prefer a monthly bill, and around 20% like the idea of an annual bill.

The survey also highlights the general lack of knowledge about the federal fuel tax and mileage fees. Only 2% of respondents knew that the federal gas tax hasn’t been raised in over 20 years, and about 60% were unaware of mileage fees. Despite this, more than half have privacy concerns about a mileage fee, and half consider it fairer than fuel taxes.

While the Mineta Transportation Institute’s survey shows growing support for a mileage tax over the past 15 years, a simple majority may pose a challenge for states seeking new transportation funding methods. As vehicles become more fuel-efficient, fuel tax revenue is decreasing.

According to the Tax Foundation, only three states generate enough dedicated revenue to fund transportation spending. Most states have considered a mileage fee, with four states currently running active programs for passenger vehicles and four targeting heavy commercial vehicles.

Michigan is the latest state to explore a mileage fee, launching a pilot program for a mileage-based road-usage tax next June. The state faces an estimated $3.9 billion annual deficit in road funding.

Source: Land Line

The post Americans Show Growing Support for Fuel Tax Increases Over Mileage Fees, Survey Finds appeared first on Truck Drivers USA.

Residents can expect to save 35 cents per gallon on diesel and 31.2 cents per gallon on gasoline with the suspension of the excise tax.

“When the gas tax was suspended from March through December of 2022, Georgians saved about $1.7 billion at the pump,” Kemp’s office noted. He has suspended fuel taxes in the past for state residents.

Fuel prices are expected to decrease in the coming days, following a temporary tax suspension, according to the governor’s office.

“While high prices continue to hit family budgets, hardworking Georgians deserve real relief and that’s why I signed an executive order today to deliver it directly to them at the pump,” Kemp said. “Working with partners in the General Assembly, we’ll continue to help Georgians weather the economic headwinds.”

According to recent statistics from Moody’s Analytics, Americans are now spending $709 more each month compared to two years ago, and $202 more per month compared to last year.

“The benchmark oil price is currently at a 10-month high, and the average price for a gallon of gasoline has risen more than 30 cents in Georgia over the past year,” noted the emergency declaration.

As of Sept. 15, diesel prices in Georgia averaged $4.306 per gallon, while gasoline prices were $3.448. Nationally, the average per-gallon price for diesel was even higher at $4.549, with gasoline not far behind at $3.866.

In addition, the cost of everyday essentials like fuel, housing, and food has skyrocketed.

The Speaker of the House in Georgia’s General Assembly, Jon Burns, praised Governor Kemp for taking action to suspend motor fuel taxes. Burns believes that Georgia’s success is not a coincidence, but the result of policies implemented to maintain its status as the best state for business.

Fuel taxes in the state are currently suspended for certain eligible motor fuels. These include clear diesel, gasoline, aviation gasoline, liquid propane gas, gasohol, ethanol, liquefied natural gas, and compressed natural gas. It’s important to note, however, that motor fuels sold for off-highway use, such as jet fuel and dyed diesel, are typically exempt from state motor fuel excise taxes.

“Distributors should not remit Georgia motor fuel excise tax on motor fuels sold during the suspension period,” according to the Revenue Department. Any fuel delivered to a retailer before the suspension went into effect is not considered exempt from motor fuel taxes.

Motor carriers licensed with the International Fuel Tax Association (IFTA) traveling in Georgia from Sept. 13, 2023 through Oct. 12 are exempt from paying motor fuel excise tax.

During this suspension period, you can purchase qualifying motor fuel tax-free and travel nontaxable miles in Georgia. However, please note that you still need to file IFTA returns for the quarters included in the tax-free period. It is important to accurately report all fuel purchases on your IFTA returns, whether they are tax-free or tax-paid, as this information will reflect your motor carrier driver’s miles per gallon for the suspension period.

Take advantage of this opportunity to save on fuel expenses and enjoy a smoother journey in Georgia. Don’t forget to keep track of your fuel purchases and report them accordingly.

Source: Transport Topics

The post Georgia Takes Action to Combat Inflation: Temporarily Suspends Diesel and Gas Taxes appeared first on Truck Drivers USA.

From a 4.3-cent hike in Maryland to a nearly 2-cent drop in Utah, prepare for automatic adjustments at the pump.

Here’s what you need to know to avoid any surprises while hitting the road.

California

Starting July 1st, fuel rates will increase again to keep up with inflation.

Gasoline excise tax will be collected at 57.9 cents per gallon, up by 4 cents, while diesel excise tax will be collected at 44.1 cents per gallon, up by 3.1 cents.

Governor Gavin Newsom has attributed high fuel prices to oil companies and has signed a bill into law to implement price-gouging rules that went into effect on June 26.

Illinois

Due to a cost-of-living adjustment that went into effect on January 1, state excise tax rates on gasoline and diesel rose by 3.1 cents to 42.3 cents and 49.8 cents respectively. A delayed increase that was scheduled for last July, Governor J.B. Pritzker attributed the change to rising inflation and high fuel prices nationwide.

The next hike is set to take place on July 1, with another 3.1 cent boost for gas and diesel excise taxes to 45.4 cents and 52.9 cents, making the diesel excise rate the third highest in the country after Indiana and Pennsylvania.

Indiana

Excise rates on gas and diesel in Indiana are scheduled to increase by one penny each, effective July 1.

This comes as part of a 6-year-old law that requires annual adjustments through 2024, with a cap of one penny each year. However, a new transportation bill was recently signed into law by Gov. Eric Holcomb, which includes a provision to extend the adjustments through 2027.

The gas and diesel rates will now be 34 cents and 56 cents, respectively.

Kentucky

Kentucky will increase its fuel tax rates by 2.1 cents per gallon for both gas and diesel. This is the result of a statute that links fuel taxes to wholesale fuel prices, which have risen since Gov. Andy Beshear froze the rates last year.

The new tax rates will be 28.1 cents per gallon for gas and 25.1 cents per gallon for diesel.

This change will impact drivers and businesses in the state, but it will also generate revenue to support the maintenance and improvement of Kentucky’s transportation infrastructure.

Maryland

As part of a decade-old inflation indexing law, both gas and diesel taxes will rise by 4.3 cents. This means the gas tax will jump from 42.7 cents to 47 cents, and the diesel rate will increase from 43.45 cents to 47.75 cents.

However, this is not a surprise – Maryland law allows for fuel rates to be adjusted annually based on the consumer price index. Keep in mind that these two rates have increased by a total of 10.9 cents over the past two years.

Missouri

Missouri’s fuel tax rate is set to increase again on July 1st. This is the third out of five planned increases that were put in place by a 2021 law to raise the state’s tax rate from 17 cents to 29.5 cents by July 2025.

The first two increases have already taken effect, bringing the current rate to 24.5 cents.

Despite these changes, Missouri motorists can apply for refunds of the additional tax amounts.

Unfortunately, an attempt to extend this refund option to all Missouri vehicle owners, including truck drivers, failed to pass in the statehouse this year.

Utah

Thanks to a decision by Governor Spencer Cox, Utah will depart from the national trend of increasing fuel tax rates. Utah currently has a 36.4-cent tax on gas and diesel purchases – an increase of 4.5 cents from last year. However, this is set to change.

The state’s tax commission adjusts the fuel tax rate each July using a calculation based on 16.5% of the average fuel price charged by refineries. The new law changes this calculation and as a result, the tax rate will lower to 34.5 cents starting July 1.

This change will result from dropping the rack rate to 14.2%. However, it is estimated that rates will increase to as much as 42 cents per gallon by 2028. While the change is estimated to reduce tax revenues by roughly $35.4 million in fiscal year 2024 and another $31 million the following year, a new law adds a 12.5% tax on electricity from electric vehicle charging stations to help cover the loss.

Virginia

Virginia’s gas and diesel excise rates will undergo a slight upward adjustment at the start of next month. The current excise rate of 28 cents/gallon on gasoline will be raised to 29.8 cents/gallon, representing an increase of 1.8 cents.

Similarly, the existing diesel rate of 28.9 cents/gallon will be increased to 30.8 cents/gallon. Moreover, the wholesale tax on fuels will also go up, with the gas rate rising from 8.2 cents/gallon to 8.8 cents/gallon and the diesel rate going up from 8.3 cents/gallon to 8.9 cents/gallon.

This move will result in Virginia’s gas tax reaching 38.6 cents/gallon and the diesel tax becoming 39.7 cents/gallon.

The state’s tax hike is a result of indexation to yearly changes in the consumer price index.

Source: Land Line

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