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7 States Gas Tax Hikes on July 1: What You Need to Know About the New Fuel Prices

Gas Tax Hikes in Seven States Effective July 1

July Gas Tax Hikes: California, Illinois, and Five More States Raise Fuel Taxes

As the Fourth of July vacation draws near many drivers are finding the gas pump more painful because seven states have increased their gas tax hikes, reports Kiplinger. Even though the national average gas price is at $3.49 per gallon as of July 1 additional gas tax hikes have been enacted in some states. California still has the highest gas tax hikes in the country—it is at 69.8 cents per gallon. Due to the gas tax hikes a gallon of standard gasoline now costs on average $4.79 across the state. In addition to the gas tax hikes, California also introduced a new tax on guns and ammunition starting July 1. The state’s Supreme Court also made headlines by removing a ballot initiative that would have allowed voters to weigh in on state tax hikes. Illinois follows closely behind with a gas tax increase to 47 cents per gallon which is up from 45.4 cents. Illinois remains one of the few states that does not tax retirement income despite this hike. Indiana motorists will also see their gas tax rise from 34 cents to 35 cents per gallon which brings the total tax including additional fees to 56.1 cents per gallon.

Virginia is also implementing a modest increase raising its gas tax to 30.8 cents per gallon from 29.8 cents. This hike is relatively small but it still adds to the overall cost of driving in the state. Missouri, on the other hand, is making a more substantial jump with its motor fuel tax rising to 27.5 cents per gallon from 24.5 cents. This increase might surprise residents who are used to lower gas taxes with the average price of a gallon of regular in Missouri now around $3.13. Nebraska and Colorado are also adjusting their gas tax rates albeit less dramatically. Nebraska‘s gas tax will see a half-cent increase making it 30.5 cents per gallon. Colorado’s new gas tax rate is 27.9 cents per gallon with small increases in road usage and environmental fees. However, it’s not all bad news for drivers. Starting July 1 Kentucky is lowering its gas tax by 2.3 cents per gallon bringing it down to 27.8 cents. This reduction is expected to save motorists about 32 cents per fill-up for a 16-gallon tank.

READ ALSO: $1 Billion Shift: Colorado Lawmakers Prioritize Tax Credits Over TABOR Refunds, Sparking Fiscal Concerns!

7 States Hike Gas Taxes on July 1: What You Need to Know About the New Fuel Prices (PHOTO: Chicago Sun-Times)

Relief in Maryland and Increases in Seven Other States

Furthermore, Maryland is also offering some relief with a slight decrease in its state gas tax thanks to a law that adjusts the tax based on economic factors. While these gas tax increases may be unwelcome it’s worth noting that these taxes often fund crucial infrastructure projects and environmental initiatives. Being aware of these changes can help drivers budget accordingly and consider more fuel-efficient alternatives.

READ ALSO: Philly Joy Bank: $1,000 Monthly Aid For Pregnant Women In High-Risk Neighborhoods

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