Fuel Retail Watch: The Second Wave of Possible Gas Tax Changes

Following Alabama, Michigan, Ohio, and Wisconsin, which all rolled out proposals for gas tax changes earlier this year, another round of states is considering revising their diesel and gasoline taxes to help raise money for roads and other transportation infrastructure repairs.

Fuel Retail Watch The Second Wave of Possible Gas Tax Changes

Which states are these?

Illinois

Senator Martin Sandoval has proposed a gas tax bill that would see Illinois’ gas tax rate to increase to 38 cents per gallon (CPG). Currently, fuel customers in Illinois pay 19 cents per gallon on their fuel purchases, a figure that has remained unchanged since 1990. The bill also includes provisions for the increase of EV fee and driver’s license fee and is expected to bring in an additional $2 billion in revenue.

Louisiana

After failing to get the approval for a gas tax increase in 2017, Republican Steve Carter has introduced a new bill on the floor that would raise Louisiana’s gas taxes by 18 cents per gallon over the next twelve years. In the first year, the tax would increase by 6 CPG and would then increase in the steps of 2 CPG every two years through 2031. Named House Bill 542, the bill also proposes an increase on diesel tax and EVs and hybrid vehicles fees.

New Jersey

New Jersey could well see a third increase in its gas tax rate since 2016, NJ.com reports. Under the legislation, the state treasurer has the authority to adjust the gas tax rate each year should they feel the need to do so. This year, New Jersey has seen a decrease in gasoline consumption, which has stirred up the debate that whether the state government would push up the tax rate to compensate for the resulting decline in the infrastructure repair revenue. A final decision is expected in the month of August of this year.

Virginia

Last on the list is Virginia. In a one-day legislative session held in the first week of April, Gov. Ralph Northam proposed a gas tax hike for communities along the I-81 corridor to help generate increased funding for the Interstate 81 Corridor Improvement Plan. The bill if passed would increase the gas tax by about 7 cents per gallon for the gas stations in the covered territory.

As always, John W. Kennedy Company will keep you updated on the developments for the proposed gas tax changes.

John W. Kennedy Company is your one-stop shop for all your gas station equipment and supplies needs. We cater to containment entry fittings, fuel dispensers, fuel filters, underground fuel storage tanks and much more. All our products are manufactured to the highest standards of quality to ensure your gas station works safely, efficiently and smoothly. Visit our online store to learn more about our product range.

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