All articles tagged with #gas tax
North Carolina Governor Josh Stein signed a bill suspending the state’s 41-cent-per-gallon gas tax through November 30. The move, passed with bipartisan support, aims to lower fuel costs for residents but faces criticism over its timing ahead of the midterm elections.
President Donald Trump indicated on Tuesday that his administration is considering suspending the federal gasoline tax, a move that would require congressional approval. The proposal emerges as fuel prices remain elevated ahead of the November midterm elections. While the president suggested prices would drop once the Iran conflict ends, critics argue that refining capacity shortages, not just the war, are driving costs. Senators have also urged a temporary tax holiday to provide immediate relief to consumers.
Georgia Governor Brian Kemp declared a state of emergency and suspended the state’s motor fuel excise tax for 30 days, effective September 29 through October 29. The move removes 33.3 cents per gallon from gasoline and 37.3 cents from diesel, responding to average prices of $4.19 for gas and $6.24 for diesel. The executive order also suspends commercial vehicle weight limits to lower supply chain costs. This is the second such suspension in 2026, amid rising fuel costs linked to global market volatility and the Iran conflict.
California hikes its gas tax by 2.2 cents per gallon as part of an inflation adjustment, lifting the state tax to 63 cents per gallon and, with federal levies, nearly 75 cents per gallon; Washington, Maryland and New Jersey also enacted inflation-linked increases effective July 1, 2026 (New Jersey had already raised rates earlier in 2026), while Oregon’s proposed hike failed and New Mexico’s bill was killed, all aimed at funding transportation infrastructure like roads, bridges and ferries.
Starting July 1, Washington state’s gas tax increases 2% to 56.5 cents per gallon to fund road work through the motor vehicle fund.
California drivers will face another gas price uptick on July 1 as the state’s gasoline excise tax rises 2.2 cents to 63.4 cents per gallon; the change, required by a 2017 inflation‑adjustment law, applies to the excise tax and not federal or sales taxes, and comes even as statewide prices hover above the national average (about $5.45/gal). Revenue funds road and transportation projects, while residents express frustration and some weigh switching to electric vehicles amid rising living costs.
California’s gasoline excise tax will rise 2.2 cents on July 1 to 63.4 cents per gallon, adding to drivers’ costs with San Diego’s average pump price around $5.52 per gallon; the 2017 inflation-linked adjustment funds highway maintenance and projects, but revenue may shrink as electric-vehicle adoption grows. California aims to end sales of new gasoline cars by 2035 and to phase out oil extraction by 2045, while federal action on a possible temporary suspension of the 18.4-cent federal gas tax remains unresolved.
Washington state will raise its gas tax by six cents per gallon starting July 1 as part of a $3.2 billion, six-year transportation package to cover a projected $1 billion shortfall; the diesel tax also increases by three cents to 58.4 cents. The new rate brings the state tax to 55.4 cents per gallon, ranking third-highest in the nation behind California and Pennsylvania. Public discussion around the measure included commentary from a KIRO host joking about buying an electric car to cope with higher fuel costs.
Georgia’s temporary suspension of the state motor fuel tax will expire at 11:59 p.m. June 2 unless Gov. Kemp extends it again, meaning drivers could see higher prices soon. The tax break saves about 33 cents per gallon (roughly $14 a month) but costs roughly $200 million a month in transportation funding. As of Monday, Georgia averaged $3.79 per gallon (metro Atlanta $3.85); the national average was about $4.32, aided by the suspension. Kemp hasn’t announced an extension, and AAA warns rising prices can delay refueling, while experts suggest refilling before tanks are a quarter full.
Illinois lawmakers are finalizing a nearly $56 billion budget backed by a windfall from higher gas prices, diverting about $150 million of gas-tax revenue from mass transit to operating expenses while approving a 3.2% cost-of-living increase for lawmakers to $101,450 and similar raises for the governor and agency heads; the plan also relies on new revenue ideas (digital advertising tax, fantasy-sports tax) and includes a one-time $400 SNAP payment for residents who lose benefits under federal rules, with education funding maintained and no layoffs.
Illinois lawmakers unveiled a $55 billion budget funded by tax increases and revenue diversions as the session nears its year-end deadline, while Bears stadium talks stall amid Chicago opposition to Arlington Heights tax breaks and a push to keep the team in the city; negotiators are considering diverting higher-than-expected gas-tax revenue to transit and operating costs, pausing the July gas-tax increase, and pursuing additional revenue ideas (digital advertising tax, per-user tax, corporate-loss deduction cap) along with housing and data-center measures, with a 3.2% pay raise for lawmakers included in the draft budget.
Oregon voters rejected Measure 120, leaving lawmakers with the task of crafting a long-term funding plan for roads, bridges and transit by 2027. With the gas-tax hike off the table, the Legislature faces pressure to identify new revenue options to maintain and improve the state’s transportation network and fund future projects.
Oregon voters rejected Measure 120, a transportation funding package that would have raised the gas tax, elevated vehicle fees and temporarily increased payroll taxes to boost funding for roads, bridges, and transit. With about 83% voting against and 17% in support, the defeat means no immediate changes to current taxes, but officials warn a long-term funding gap remains, likely keeping transportation funding on the agenda for the 2027 session.
Oregonians voted to block a measure that would have doubled many vehicle-registration and title fees, raised the gas tax from 40 to 46 cents, and doubled the payroll tax for public transit, a proposal that failed by about four-to-one and would have funded road and bridge maintenance across the state, with rural areas and counties losing potential funding; the outcome leaves lawmakers pursuing a sustainable transportation plan via a governor-led workgroup that will issue recommendations by year’s end ahead of the 2027 session.
Trucking and construction trade groups oppose a proposed temporary pause on the 18.4-cent federal gas tax (and the 24.4-cent diesel tax), arguing it would drain the Highway Trust Fund and undermine highway and transit funding even as gas prices rise amid the Iran conflict; the idea has mixed support in Congress, with a three-month pause potentially adding billions to the deficit if no offset revenue is found.