As states have looked to shore up fiscal budgets in recent years, many of them have turned to increases in the gasoline and diesel motor fuel excise taxes. 2017 is no different, with increases in eight states taking effect as of Jan. 1, 2017. Two states – New York and West Virginia – will see slight reductions based on automatic adjustments. A summary of the changes are below.
New Jersey: After a $0.23/gallon increase for the gasoline tax in November 2016, New Jersey also raised its diesel tax by $0.159/gallon on Jan. 1. An additional increase to the diesel excise tax is scheduled for July 1 of this year, to reach a total of $0.445/gallon.
Pennsylvania: The Keystone State will again see its motor fuel excise taxes rise. Gasoline taxes will total $0.582/gallon, an increase of $0.079/gallon effective Jan 1. The diesel tax rate increases by $0.107/gallon for 2017.
Michigan: Michigan’s diesel tax rate increases $0.113/gallon to start the new year, and the gasoline rate increases by $0.073/gallon.
Nebraska: As part of 2015 legislation to increase the total tax rates by $0.06/gallon for both gasoline and diesel, 2017 brings a $0.015/gallon increase for both fuels. Excise taxes for both now total 27.3 cents per gallon for the first half of 2017.
Georgia: The Peach State sees a modest increase in both excise tax rates for 2017 – gasoline increases by $0.003/gallon while diesel increases $0.004/gallon.
North Carolina: Similar to Georgia, North Carolina sees a modest 2017 increase, with both gasoline and diesel tax rates increasing by 0.3 cents/gallon for 2017.
Indiana: Due to fluctuations in the price of gasoline, Indiana consumers will pay 0.2 cents/gallon more to begin 2017. Indiana’s excise tax rate varies based on the statewide average retail price of gasoline.
Florida: Much like Indiana, the Sunshine State’s tax rates vary based on inflation. 2017 sees a $0.001 increase for both gasoline and diesel excise tax rates.
New York and West Virginia: New York lowers its gasoline and diesel tax rates by $0.008/gallon in 2017, while West Virginia lowers both by a penny.
The Institute on Taxation and Economic Policy has put together a quick reference chart for all the rate increases and decreases taking effect on Jan. 1. See the charts for gasoline and diesel.
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