California’s gas tax, among the highest in US, rises again

California’s gas tax, among the highest in US, rises again

Gas tax increases went into effect in a number of states on Wednesday, including California where the per-gallon rate rose to 50.5 cents.

The 3.2 cent increase in the Golden State was implemented as part of a 2017 law, which has been steadily raising the tax as a means to generate more revenue.

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California has one of the highest gas taxes in the United States, making it the most expensive place to fill your tank, according to GasBuddy.

The average state excise tax is 25 cents per gallon, according to the American Petroleum Institute.

On top of state taxes, drivers also pay federal fuel taxes.

In South Carolina, the fuel tax increased two cents to 24 cents per gallon, and in Illinois the levy increased 0.7 cents to 38.7 cents per gallon.

In Nebraska, fuel taxes rose to 33.2 cents per gallon, from 29.3 cents per gallon, and in Virginia they climbed 5 cents to 21.2 cents per gallon.

The increases come after months of Americans taking to the road less frequently due to coronavirus-related lockdown and social distancing guidelines. Those same restrictions have caused a decline in state and local tax revenues.

The national average gas price as of Wednesday was about $2.18 per gallon, according to AAA. In California, the average was higher at $3.07 per gallon. The Golden State was the only state other than Hawaii where the average exceeds $3.00 per gallon.

Last year at this time, the national average was $2.71 per gallon.

 

Source:-foxbusiness

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