USA TODAY International Edition
Which states have highest gas taxes?
A FOOLISH TAKE
Prices at the pump have headed higher lately as crude oil continues to recover from its mid-2010s slump. For drivers, another factor adding to transportation costs is the trend toward rising gasoline taxes imposed by state governments.
New Jersey recently announced it would boost its state gasoline tax by $0.043 per gallon, effective Oct. 1. That will bring the total state taxes per gallon up to $0.414. The increase adds insult to injury after a massive $0.23-per-gallon increase two years ago, prompted by the need to pay for infrastructure improvement projects across New Jersey.
Yet New Jersey doesn’t come close to having the highest state gasoline taxes in the nation. Pennsylvania made headlines in 2013 when it took steps to link its tax to gas prices, resulting in a neardoubling of the state tax per gallon. California has routinely used gas taxes as a funding source, with its latest $0.12per-gallon increase coming last November. In Washington state, tax increases of almost that much – $0.119 per gallon – came in two phases in 2015 and 2016.
Even some of the least-taxing states have seen pressure to boost revenue from gasoline taxes. Oklahoma would have been on this list earlier this year, but a $0.03-per-gallon increase to help resolve issues related to teacher pay lifted total state taxes to $0.20 per gallon. Later this year, voters in Missouri will decide whether to accept a $0.10 boost to their prices at the pump.
Many states are struggling to make ends meet, and roads and bridges are decaying. That makes further gas tax increases more likely in coming years.