Gas Taxes Set To Rise In Some States

Associated Press
Published: June 9, 2008
Updated: June 9, 2008

ATLANTA (AP) - All of the talk among political candidates about a federal gas tax holiday to offset soaring prices at the pump misses a critical fact: state taxes are, for the most part, even more costly for drivers.

And in some states, gas taxes are rising even higher, with a handful set to jump at the height of the summer driving season.

According to the American Petroleum Institute the average state sales tax on gasoline is 28.6 cents a gallon. That's a dime more than the federal gasoline tax of 18.4 cents a gallon.

And while the federal rate hasn't increased since 1997, the amount drivers pay in state taxes can jump every year -- or even every day -- inching up as the price does.

The national average price rose today to $4 for a gallon, according to AAA and the Oil Price Information Service, though, drivers in many parts of the country have already been paying well above that price for some time. Gas prices are expected to keep climbing, putting greater pressure on consumers, businesses and state legislators.

Some lawmakers have talked about providing relief by suspending the gas tax, but few proposals have gone anywhere. States rely on gas tax dollars to build and repair infrastructure. With many roads and bridges crumbling, elected officials are reluctant to give that money up.

So far, only Georgia has moved to provide relief. Governor Perdue signed an executive order halting what would have been a state tax increase of 2.9 cents per gallon beginning in July, just as many families were hitting the road for summer vacation.

Perdue, who suspended the entire Georgia tax on gasoline for a month in the wake of Hurricane Katrina, said it's unfair for the state to reap a tax windfall on the back of cash-strapped residents.

Perdue said, "Frankly, I don't think we can justify raising taxes on gasoline in a time of economic stress for many families."