Here are the key details:
- Effective Date: The new system is set to go into effect at the pump on January 1, 2026.
- Tax Increase: The per-gallon motor fuel tax rate (for gasoline and diesel) is set to increase from the current $0.31 per gallon (as of January 1, 2025) to $0.51 per gallon.
- Sales Tax Removal: The state's 6% sales and use tax on eligible motor fuels will be exempted starting on January 1, 2026.
- Net Effect: This restructuring is primarily designed to ensure that all tax revenue collected at the pump goes directly to road and infrastructure funding, which was not the case with the 6% sales tax. The total tax burden for the consumer is intended to be revenue-neutral or only slightly higher, as the new excise tax is replacing the lost sales tax revenue.
- Would you like to know the estimated total tax rate for gas once the new plan takes effect?...
Much more as I interacted with their questions. Try it!
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