Diesel and gasoline taxes will change in 10 states on July 1, with most of them heading higher, according to an analysis by the Institute on Taxation and Economic Policy.
Wyoming, Maryland, Virginia and Vermont passed legislation this year raising their diesel taxes while Connecticut, Kentucky and North Carolina are seeing their taxes rise automatically because they are tied to the price of the fuel. Nebraska is unique because its diesel tax is tied to the price of gasoline, but the hike is also the result of legislative action.
Of the eight states raising their gasoline tax rates on July 1, Wyoming and Maryland passed legislation this year implementing increases, while Connecticut’s increase is due to legislation passed in 2005. California, Kentucky, Georgia and North Carolina are seeing their rates rise to keep pace with growth in gas prices. Nebraska is rising due to an increase in gas prices and because the rate is automatically adjusted to cover the amount of transportation spending authorized by the legislature.
There are a few states where fuel tax rates will actually fall, with Virginia’s being the most notable example. Vermont will see its gasoline tax fall by a fraction of a penny on Monday due to a drop in gas prices, though this follows an almost 6-cent hike that went into effect in May as a result of new legislation. Georgia and California will also see their diesel tax rates fall by a penny or less, due to a diesel price drop in Georgia and a reduction in the average state and local sales tax rate in California.