On July 1, Illinois and Ohio increased gas taxes by double digits: 19 cents per gallon and 10.5 CPG, respectively, followed by California at 5.6 CPG, all due to legislation passed this year or in 2017. Diesel tax hikes were even higher.
It is an understatement that Increasing fuel taxes is challenging. If there is an opportune time to do it, it's when gas prices are relatively low, when the state decides to cut other taxes, and when there's bipartisan support.
After a slow 2016, four states this year have already passed state gas tax increases. South Carolina may be next if they override the governor's veto. A new analysis should help legislators do just that.