New year to bring heftier gasoline taxes in 7 states

Motorists in nine states will see changes in gas taxes at the pump on New Year’s Day, and more than a dozen states will examine adjustments in 2017.

Pennsylvania has the nation’s largest gas tax, at 50.4 cents per gallon, according to the Tax Foundation. The rate will rise 7.9 cents per gallon, based on a 2013 law. The other big increase is in Michigan, where the gas tax is 30.54 cents per gallon. That rate will rise 7.3 cents per gallon, based on a 2015 law.

Nebraska’s rate of 27.7 cents per gallon will go up 1.5 cents per gallon, as part of a four-step hike approved in 2015. Georgia, North Carolina, Indiana and Florida will see modest bumps of less than a penny per gallon, based on automatic adjustments, according to the Institute on Taxation and Economic Policy.

Two states — New York and West Virginia — will have slight reductions based on automatic adjustments, according to the institute. The Empire State’s rate will fall 0.8 cent per gallon, and the Mountain State’s rate will drop 1 cent per gallon.

The hikes reflect state efforts to balance budgets for road construction and maintenance when Congress hasn’t raised the federal gas tax of 18.4 cents per gallon since 1993. State transportation officials and the construction industry contend federal funding hasn’t kept pace with inflation and more fuel-efficient cars.

Voters in 22 states approved ballot initiatives Nov. 8 totaling more than $200 billion for state and local transportation projects, according to the American Road & Transportation Builders Association. The funding for those measures was largely through sales and property taxes.

State legislatures are likely to debate gas taxes as New Year’s resolutions in 2017.

Alaska hasn’t raised its gas tax since 1970 and has the nation’s lowest rate at 8 cents per gallon, according to the Tax Foundation. Gov. Bill Walker proposed Dec. 15 to triple the tax over two years.

New Jersey increased its rate by 23 cents to 37.5 on Nov. 1 in its first gas tax hike since 1988. Its previous rate of 14.5 cents per gallon had been the second-lowest in the nation after Alaska.