CCH Takes a Look at State Gasoline Tax Rates for 2011

RIVERWOODS, Ill., Aug. 31, 2011 /PRNewswire/ -- During a year where gasoline prices jumped above $4 per gallon in many parts of the country before leveling off, drivers are keeping an even closer eye on the ever-changing cost of filling up at the pump. CCH, a Wolters Kluwer business and the leading global provider of tax, accounting and audit information, software and services (CCHGroup.com), monitors consumption taxes and takes a look at changes in state gas taxes from the previous year. A national map of gas tax rates shows vast differences in gas tax per gallon rates as well as which states raised and lowered rates.

"Although many states held gas taxes at 2010 levels, a few increased their rates to replenish depleted coffers," said CCH Senior State Tax Analyst Daniel Schibley, JD.  "It's important to note that each state's per gallon gas tax rate is separate from additional sales and local taxes as well as environmental and inspection fees that may be tacked onto each gallon of gas. So, drivers in states with relatively low gas tax rates may be paying more when you add on extra taxes and fees."

Gas Tax Trends in 2011

Drivers on the West Coast may be digging a little deeper into their wallets when pulling up to the pump. Washington state still has the highest gas tax rate in the country at 37.5 cents per gallon, unchanged from 2010. California ranks second highest with a rate of 35.7 cents per gallon, up from a year ago when it was 35.3 cents per gallon. And in Oregon, motorists saw the sharpest one year gas tax increase, up 6 cents per gallon from last year to 30 cents per gallon now.

Overall, seven states raised gas taxes in 2011 with Florida issuing the smallest increase, from 16 cents per gallon to 16.2 cents per gallon. Nebraska was the only state to lower its rate. Gas taxes there dropped from 27.1 cents a gallon last year to 26.3 cents a gallon in 2011.

Georgia checks in with the lowest gas tax rate at 7.5 cents per gallon, unchanged from last year. Both New York State and Alaska have the next lowest rates, each with gas taxes of 8 cents per gallon.

In some areas of the country, drivers may be tempted to fill up on the other side of their state line. For example, gas stations in northern Georgia probably see their fair share of cars with North Carolina license plates. North Carolina raised its rate to 35 cents per gallon, a 3.1-cent increase from 2010. A similar situation exists in southern New York state where the gas tax of 8 cents per gallon is substantially lower than what drivers in northern Pennsylvania pay – 31.2 cents per gallon.

"Crude oil values are still the key drivers of how gas prices are determined," Schibley added. "But it's interesting to see the disparity in state gas tax rates across the country and how some states rely much more on gas tax revenue than others."

About Daniel Schibley

Daniel Schibley is an attorney and state tax analyst who specializes in tracking, analyzing and reporting on new developments and trends in state tax issues. A former practicing attorney and assistant professor of law, Schibley is a leading authority on Streamlined Sales Tax activities and the taxation of remote sales.

For More Information

To see the CCH national map of current state gas tax rates and changes from 2010, please click here. The figures for each state are exclusive of sales tax, local taxes, various environmental taxes and fees and license and inspection fees. Local taxes may apply in certain jurisdictions, but are not reflected.  

About CCH, a Wolters Kluwer business

CCH, a Wolters Kluwer business (CCHGroup.com) is the leading global provider of tax, accounting and audit information, software and services. It has served tax, accounting and business professionals since 1913. Among its market-leading solutions are The ProSystem fx® Suite, CorpSystem®, CCH® IntelliConnect®, Accounting Research Manager® and the U.S. Master Tax Guide®. CCH is based in Riverwoods, Ill. Follow us now on Twitter @CCHMediaHelp.

Wolters Kluwer (www.wolterskluwer.com) is a market-leading global information services company. Wolters Kluwer is headquartered in Alphen aan den Rijn, the Netherlands. Its shares are quoted on Euronext Amsterdam (WKL) and are included in the AEX and Euronext 100 indices.

SOURCE CCH, a Wolters Kluwer business