Federal funding pitfall prompts states to increase gas taxes

By |  June 30, 2015

Six states will increase their gas taxes July 1 as a means to replace lacking federal funds for highway projects, according to the Citizens for Tax Justice and the Institute on Taxation and Economic Policy (ITEP).

The Hill reports that Georgia, Idaho, Maryland, Nebraska, Rhode Island and Vermont plan to increase their respective gas taxes between 0.35 cents and 7 cents per gallon. The additional money will be collected in addition to the existing federal gas tax all drivers in the United States are currently charged.

“These increases will fund infrastructure improvements that directly benefit drivers and other travelers – an especially important step at a time when Congress’ commitment to adequately funding infrastructure remains highly uncertain,” writes Carl Davis, ITEP research director, in a blog post.

Idaho is raising its gas tax the most at 7 cents per gallon. Georgia’s gas tax is going up the second most at 6.7 cents per gallon. Vermont’s gas tax increase is the smallest at 0.35 cents, according to ITEP.

California is also adjusting its gas tax rate, decreasing its tax by 6 cents per gallon.

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