Saturday, December 20, 2014
Taxing your trip
In last week’s post about ExxonMobil’s 2013 earnings, I noted that we earned about 5.5 cents for every gallon of gasoline and other petroleum products we refined, shipped, and sold in the United States. Consider this: The federal and state and local governments collected 40 to 60 cents per gallon in taxes. The American Petroleum Institute just updated their map showing the combined local, state and federal tax rate in each state as of Jan. 1, when new taxes took effect. API US MapThe federal gasoline tax is the same from coast-to-coast –18.4 cents a gallon – which means any variations have been implemented by state and local governments. The highest gasoline tax in the country is in California, where it now exceeds 70 cents a gallon. Combined with California-specific fuel-blending regulations that drive up refining costs, these taxes help make Golden State gasoline prices the most expensive in the country. Several other states, such as New York, Connecticut, and Hawaii, are close to California in terms of the fuel-tax burden their residents bear, though none has yet joined in crossing the 70-cent-per-gallon threshold. I encourage you to study API’s map (click the graphic above to enlarge), or dig into its interactive version for state-and-local-level specifics.