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Nebraska to Increase Gas Tax


 Gas tax rates in Nevada.

Nebraska lawmakers passed and presented to the governor legislation that would increase the state gas tax over a period of four years. The governor returned it to them without his approval. And then they went ahead and approved it.

Gov. Pete Rickets made the following statement about his veto:

“The Legislature’s decision to raise the gas tax hurts hardworking Nebraskans who can least afford a tax hike. When I travel the state, Nebraskans tell me that they need tax relief, not tax increases. Our state already has the 13th highest property taxes, the 15th highest income taxes, and this tax hike makes our gas tax rate the 16th highest in the nation. This tax increase will not only hurt Nebraska’s hardworking families, but it will only make it more difficult to grow Nebraska because of our state’s burdensome tax climate.”

Nonetheless, the measure was passed on May 14, “notwithstanding the objections of the Governor.”

New tax rates for motor fuels will be as follows:

  • 7.5 cents per gallon through December 31, 2015.
  • 8 cents per gallon beginning January 1, 2016 through December 31, 2016.
  • 8.5 cents per gallon beginning January 1, 2017 through December 31, 2017.
  • 9 cents per gallon beginning January 1, 2018 through December 31, 2018.
  • 9.5 cents per gallon beginning January 1, 2019.

In addition, producers, suppliers, distributors, wholesalers and importers will pay the following excise tax rates:

  • 2 and 8/10 cents per gallon through December 31, 2015.
  • 3 and 8/10 cents per gallon beginning January 1, 2016 through December 31, 2016.
  • 4 and 8/10 cents per gallon beginning January 1, 2017 through December 31, 2017.
  • 5 and 8/10 cents per gallon beginning January 1, 2018 through December 31, 2018.
  • 6 and 8/10 cents per gallon beginning January 1, 2019.

Simplify fuel tax compliance.

photo credit: FutUndBeidl via photopin cc


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.