WASHINGTON, D.C. -- Several states have gone decades without raising their gasoline tax, and 2017 may prove to be a tipping point.
With gasoline prices relatively low, many states have taken the opportunity over the past few years to increase their fuel excise taxes to raise money to fund infrastructure improvements. According to an analysis by the Institute on Taxation and Economic Policy (ITEP), Washington, D.C., 24 states have increased or changed their gasoline-tax structure since 2013.
In addition, on July 1, 2017, seven states will raise their gasoline tax, led by:
Two states’ taxes will decrease slightly on this date: Iowa (-0.2 CPG) and Nebraska (-0.3 CPG).
Meanwhile, as of July 1, 13 states will have gone two decades or more since raising their fuel taxes, including one that is flirting with the half-century mark. Here are the states with the longest stretches ...
Alaska has not raised its gasoline tax in more than 47 years, although it is not for lack of trying. Most recently, Democratic Gov. Bill Walker, above, has proposed tripling the state’s 8-CPG motor-fuel tax in steps, beginning with an increase to 16 CPG in 2017 and to 24 CPG in 2018. This is as Alaska’s budget faces a $2.5 billion deficit because of dropping revenues from low oil prices. However, the Alaskan legislature has not yet moved on the proposal, according to the Juneau Empire.
Oklahoma’s gasoline tax has sat at 17 CPG for more than 30 years. Like Alaska, the state relies heavily on tax revenues from the oil and gas industries and its budget has suffered in the current bear market for the commodities. Republican Gov. Mary Fallin proposed a plan that would increase gasoline excise taxes by 6 CPG, but bills including the increase have not yet passed the state legislature because of opposition from many Democrats, KFOR reported.
Beyond Alaska and Oklahoma, nearly a dozen states have not increased their gasoline taxes in more than two decades, according to ITEP. They include:
Legislators in Louisiana did weigh a 17-CPG increase to raise $150 million for infrastructure, but the bill died in in late May after failing to win enough votes, according to The Advocate.
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