Is Your State’s Gas Tax Rising in the New Year?

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Gas taxes will go up in seven states Jan. 1 as part of a trend seen across the country fueled by road work funding needs.

As Americans across the U.S. ring in the new year on Dec. 31, drivers in seven states are preparing for a hike in gasoline taxes.

According to USA Today, on Jan. 1, gas taxes are going up in the following states:

  • Pennsylvania: increasing 7.9 cents per gallon
  • Michigan: 7.3 cents
  • Nebraska: 1.5 cents
  • Georgia: less than a penny
  • North Carolina: less than a penny
  • Indiana: less than a penny
  • Florida: less than a penny

Meanwhile, motorists in New York and West Virginia will see minor gas tax reductions in 2017. New York’s’ gas tax will dip about 0.8 cents per gallon and West Virginia is dropping its gas tax by about a penny per gallon of gas. Both changes will take effect on Jan. 1.

USA Today says the gas tax increases are “state efforts to balance budgets for road construction and maintenance when Congress hasn’t raised the federal gas tax of 18.4 cents per gallon since 1993. State transportation officials and the construction industry contend federal funding hasn’t kept pace with inflation and more fuel-efficient cars.”

It’s also anticipated that gas taxes will be a hot topic for state legislatures in 2017.

“Altogether, it appears that more than a dozen states will seriously debate gas tax changes next year,” Carl Davis, research director at the Institute on Taxation and Economic Policy, tells USA Today.

Do you think raising gas taxes makes sense? Sound off below or on Facebook.

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