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Fuel tax increases that are relatively routine will take effect on July 1 in California and Illinois.
California will increase its diesel tax from 44.1 cents to 45.4 cents per gallon. The state’s gasoline taxes will also rise , to 59.6cents per gallon compared to 57.9cents.
The Illinois Department of Revenue has adopted fuel tax increases which increase gradually each year. On July 1, diesel taxes will rise to 54.5 cents, up from 52.9 cents. Gasoline/gasohol tax will increase to 47 cents from 45.4 cents.
According to an announcement by the Indiana Department of Revenue from April, the tax for a gallon of gas in Indiana will increase one penny to 35 cents, while the tax for diesel and biodiesel is expected to rise two cents to 60 cents.
On July 1, Missouri drivers, who do not distinguish between fuel taxes for diesel and gasoline, will see a nearly 3-cent increase in motor fuel taxes, to 27 cents a gallon, above the current 24.5 cents. Missouri Department of Revenue reports that the state’s fuel taxes will increase again on July 1, 2020, to 29.5 cents a gallon.
In New Jersey a plan that would gradually increase fuel taxes by about 1.9 cents per year for the next five years, while also creating a annual electric vehicle fee, is causing anger among stakeholders.
The law was passed by Gov. Phil Murphy will increase fuel taxes to 49.3 cents per liter of diesel and 42.3 for gas. The measure changes the way state tax rates are calculated and also establishes a $250 EV charge this year, which will increase $10 every year until it reaches $290.
The revenue generated by the tax increases will be used to fund infrastructure projects. The state treasurer will determine the specific fuel tax amounts each fiscal year.
Trade group Americans for Tax Reform has objected to this move and believes that businesses will be hurt by the law.
The group claimed that “the increase in fuel prices would leave gas stations in the state vulnerable to states like Pennsylvania and New York, which would offer cheaper fuel prices even though they also have exorbitant gasoline taxes,” “With the increase in gas tax, New Jersey motorists, fuel providers, residents and visitors to the state will have a higher tax burden for the next four-year period.”
In Virginia, the tax for a gallon will increase to 31.8 cents. The gasoline tax will also rise to 30.8, cents. Taxes on blended diesel will increase by a penny, to 31.8 cents. The tax on blended gasoline will also rise by a penny, to 30.8 cents.
In Maryland however, motor fuel tax is set to fall. According to the state comptroller, on July 1, gasohol and gasoline will be taxed for 46.1 cents, compared to the current 47 cents per gallon. Diesel and biodiesel taxes will also drop to 46.85 cents, compared to the current 47.75 cents.