Motor Fuel Tax News August 31, 2022
State Motor Fuel Tax Update August 2022
California: Rates Increased For Interstate Diesel Fuel Tax Licenses And IFTA — July 28, 2022
Starting July 1, 2022 through June 30, 2023, California motor fuel tax rates for the Interstate User Diesel Fuel (DI) or the International Fuel Tax Agreement (IFTA) have increased to $0.853 per gallon from $0.727. The new tax rate is made up of the $0.41 per gallon of diesel fuel tax and an excise tax of $0.443 per gallon.
Arkansas: Motor Fuel Tax Rates Announced — July 29, 2022
For the period starting October 1, 2022 until September 30, 2023, Arkansas Department of Finance determined the wholesale sales tax on gasoline to be $0.031 per gallon on wholesale sale of gasoline and clear diesel to be $0.059 per gallon on wholesale sales of clear diesel fuel. The total Arkansas tax rates will then be as follows:
- Gasoline: $0.246 per gallon;
- Clear diesel fuel: $0.284 per gallon.
Indiana: Gasoline Use Tax Rate Announced — July 21, 2022
Indiana gasoline Use tax rate for the period beginning September 1, 2022 to September 30, 2022 is $0.240 per gallon.
Michigan: Prepaid Fuel Tax Rates Announced — July 28, 2022
Beginning September 1, 2022, till September 31, 2022, the Michigan prepaid fuel tax rates for gasoline decreased to $0.247 per gallon and diesel fuel decreased to $0.311 per gallon.
Minnesota: Announced Petroleum Debt Service Surcharge Rate — July 14, 2022
Effective July 1, 2022 through June 30, 2023, Minnesota Department of Revenue announced the petroleum debt service surcharge to remain at $0.035 per gallon. This surcharge is included in the per gallon fuel rate of Minnesota taxes.
California: Temporary Exemption For Diesel Fuel — July 8, 2022
Starting October 1, 2022 till September 30, 2023, the gross receipts from the storage, use, sale or other consumption of diesel fuel in California is exempt from sales and use tax. This exemption is not applicable to local sales, transactions, and use taxes.
South Carolina: School Buses Exempt From Motor Fuel Tax — July 8, 2022
The budget passed in the state of South Carolina exempts school busses operated by governmental agencies, school districts or head start agencies for transporting students to school, from state motor fuel taxes.
Connecticut: Motor Fuel Tax Suspension Extended — July 7, 2022
The governor of Connecticut extended the motor fuel tax suspension on gasoline and gasohol till November 30, 2022, which was initially set to expire on June 30, 2022.
South Carolina: Motor Fuel User Fee Announced — July 6, 2022
Effective July 1, 2022, South Carolina's motor user fee permanently increased to $0.28 per gallon from $0.26 per gallon.
Colorado: Temporary Reduction In Road User Charges Announced — July 1, 2022
The state of Colorado delayed the enactment of certain fees on gasoline and other fuels.
- The start of phased in road usage fees is delayed till April 1, 2023, which was initially set to start on July 1, 2022. These fees begin at $2 per gallon for fiscal year 2023-24 and are set to increase reaching $8 per gallon for fiscal year 2028-29 through 2031-32 and continue to increase thereafter depending on the rate of inflation.
- The amount of road safety surcharge is temporarily reduced which is annually imposed on the registration of a motor vehicle by $11.10 for registrations beginning in 2022 and $5.55 for registrations beginning in 2023.