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Fuel tax roundup, Summer 2014


 Fuel tax rate changes.

Many states adjust fuel tax rates on July 1, 2014. Yup, right in the middle of summer vacation. Others alter fuel taxes at the start of the year. Read on for a tidy summary of some recent fuel tax changes.

Alabama: For the period April 9, 2014-October 1, 2016, the collection of motor fuel taxes on Liquefied Natural Gas (LNG) and Compressed Natural Gas (CNG) is suspended. No other change according to Alabama Department of Revenue Motor Fuels Tax State Tax Rates webpage.

California:
The rate of International Fuel Tax and Diesel Fuel Tax decreased from 45.3 cents to 44.7 cents per gallon, effective July 1, 2014. The excise tax rate on gasoline dropped from 39.5 cents to 36 cents per gallon. See all California fuel tax rates.

Colorado: Special fuel tax rates changed, effective January 1, 2014. The most recent rates posted on the Colorado Department of Revenue website are March 2014 rates.

Connecticut: The motor vehicle fuels tax rate on diesel fuel dropped to 54.5 cents per gallon, effective July 2014.

Hawaii: The fuel tax rate in Kauai increased by 2 cents per gallon, effective July 2014.

Indiana: Effective July 2014, the Indiana gasoline use tax replaces the previous sales tax, which is no longer imposed on the sale of gasoline. The gasoline use tax rate for July 1-31, 2014 is 22.9 cents per gallon. Read about other Indiana gas tax changes.

Iowa: Effective July 1, 2014, fuel tax on Compressed Natural Gas is calculated at the rate of 21 cents per gallon (no longer 16 cents per 100 cubic feet). Additional information.

Maryland: The combined applicable rate effective July 1, 2014 for gasoline, gasohol, propane, LNC, DNG and ethanol increased from 0.2700 to 0.2740. The rate for diesel increased from 0.2775 to 0.2815. Motor fuel tax rates are indexed to changes in the CPI, except for aviation and turbine fuel. There is also a sales and use tax equivalent on all motor fuel, effective July 1, 2013. See rates effective July 1, 2013. Read about the Maryland Motor Fuel Tax.

Michigan: The rates for prepaid sales tax on gas must be posted monthly. For the period August 1-31, 2014, the prepaid sales tax rate on gasoline will increase to 21 cents per gallon (up from 20.2 cents per gallon). The prepaid rate for diesel fuel will be 21.7 cents per gallon. Additional information.

Missouri: New legislation (effective August 28, 2014) specifies measurement standards and tax rates for compressed natural gas (CNG) and liquefied natural gas (LNG) as a motor fuel. They are no longer subject to the provisions governing alternative fuel decal and tax requirements. The tax on CNG will be 5 cents per gasoline gallon equivalent until December 31, 2019, then 11 cents per equivalent until December 31, 2024, and then 17 cents per equivalent thereafter.” The same prices apply per diesel gallon equivalent of LNG. The bill becomes effective January 1, 2016.

New Hampshire: The gas tax increased by 4.2 cents per gallon, effective July 1, 2014.

North Carolina: The motor fuels and alternative fuels tax rate for July 1-December 31, 2014 dropped from 37.5 cents to 36.5 cents per gallon.

Ohio: All motor fuel tax returns must be filed and paid electronically through the Ohio Department of Taxation’s new eTRACS system, effective for returns filed and payments paid July 1, 2014. Additional information.

Pennsylvania: No change effective July 2014 to current rates or alternative fuels tax rates. The gas tax increased January 1, 2014, and is set to rise further in 2015 and 2017.

Rhode Island: No change to current rates this summer. Gas tax increases are planned for July 1, 2015. See a list of Rhode Island sales and excise motor fuels tax forms.

Vermont: The motor fuel tax rate dropped from $0.182 to $0.121 per gallon and the Motor Fuel Tax Assessment calculation has change, effective July 2014. Additional information is available on the information bulletin.

Stay compliant with fuel tax. Learn more.

photo credit: Bill Selak via photopin cc


Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.