New Report: States Held Accountable For Their Gas Tax Policies

The Institute on Taxation and Economic Policy has released a '50-state report' on state gas excise taxes - when they were last raised, the revenue loss to each state due to failure to maintain the tax, and what it would cost drivers to raise it.

There have been many reports and federal commissions on transportation funding that have studied the ramifications of the federal government's failure to raise federal fuel excise taxes since 1993. The Institute on Taxation and Economic Policy (ITEP), "a non-profit, non-partisan research organization that works on federal, state, and local tax policy issues" is the first to provide a detailed analysis for each state on the consequences of their gas tax policies.

""Building a Better Gas Tax: How to Fix One of State Government's Least Sustainable Revenue Sources" documents state-by-state figures including the costs and benefits of proposed remedies. Today's state gas taxes make up a smaller portion of family budgets than at any time since the tax was first widely instituted in the 1920s."

"Unfortunately, many politicians won't consider touching the gas tax," said Carl Davis, senior analyst at ITEP and author of the study. "They are raising sales taxes, fees on vehicles, tolls on roads, even looting education funds, all to make up for the stagnant gas tax. But they can't bring themselves to modernize the biggest source of transportation revenue that's actually under their control. It makes no sense."

From ITEP press release (PDF): "Building a Better Gas Tax" shows that the average state has not increased its gas tax rate in over a decade, and 14 states have gone 20 years or longer without an increase."

Thanks to Anne Singer

Full Story: New Report: Stagnant State Gas Taxes Costing States $10 Billion Each Year, Undermining Commerce and Forcing Raids on General Fun

Comments

Comments

State Gas Taxes are Out Of Control Now

Who are these people that make up "The Institute of Taxation and Economic Policy?" They must be very wealthy if they're suggesting to raise State Gasoline taxes! How much more can people take? The money collected from Tolls on roads and bridges should be used to fix roads. Who cares that some states haven't raised these taxes in a while? Here's a site that reveals the tax for every state www.easy-tax-information.com/state-gasoline-taxes.html

Most Expensive Places for Buying Gas

You will see that Americans are wealthier than the people in most of these places but pay much less for gas - eg, less than half as much as in Portugal.

1. Eritrea $9.58
2. Norway $8.73
3. United Kingdom $8.38
4. Netherlands $8.37
5. Monaco $8.31
6. Iceland $8.28
7. Belgium $8.22
8. France $8.07
9. Germany $7.86
10. Portugal $7.84
108. United States $3.45

I don't have a car, but I am forced to pay higher taxes into my city's general fund and higher prices for products to subsidize people who are unwilling to pay the full cost of their driving.

Charles Siegel

Gas taxes and control of externalities.

Plenty of room for more gas taxes. We don't pay true costs for fuel, nor as much as the rest of the planet, so the market is distorted.

Best,

D

Michael Lewyn's picture
Blogger

Why tolls aren't enough

It would be great if, as bkatz suggests,m toll money was used to fix roads. But unfortunately this cannot happen because most roads aren't tolled.

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