How much are fuel taxes? Is now “perfect” time to raise them?

The need for infrastructure improvements (roads, highways and bridges) is receiving increased attention due to their condition and the now substantially less cost for gas. Given the latter, some are now saying it is the ideal time to act.

A Monroe County Indiana County Council member presents a clear picture of state excise taxes on gasoline and diesel fuel and also, as of 2013, how some state fuel tax was diverted from road construction and maintenance and how the sales tax (yes, we also pay 7% sales tax on fuel in addition to the excise tax) on fuel does not go towards funding of roads at all.

With the current reduced gasoline cost some are saying now is the time to raise the fuel tax. It’s not just the state excise tax on fuel but also the federal excise tax on fuel. According to NPR, raises on fuel tax are on the table in many states around the country and have recently been approved in several. As a tax increase is contemplated the caveat is what will be the overall fuel price when oil prices rebound. It never pays to think only of the moment.

(Related source: Federal gas tax increase of 15 cents is coming…or is it?)