State News


Jan. 3: Nine States Adjust Gas Tax Jan. 1

The New Year brought adjusted motor fuel taxes to nine states, with seven states increasing their motor fuel taxes and two states decreasing the tax. Of the states that increased their motor fuel taxes, three of them—Florida, Georgia and North Carolina—did so based on...

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Indiana 2016 Ballot Measure Results



Fuel Taxes

Excise tax:

  • Liquefied natural gas (LNG): 18 cents-per-DGE.
  • Compressed natural gas (CNG), butane, and propane: 18 cents-per-GGE.
  • The tax does not apply to nominal biodiesel blends of at least 20 percent (B20); special fuel used only for a personal, noncommercial use and not for resale; or biodiesel used by a biodiesel producer holding an exemption certificate.
  • Commercial vehicles pay a surcharge tax: $0.11 per DGE for LNG and $0.11 per GGE for CNG, butane, or LPG.

Fee: Alternative fuel vehicles (defined as vehicles using liquid petroleum gas only) require an annual decal.

Fee/Tax in addition to Gas Excise Tax: Seven percent gasoline use tax rate (charged in addition to the state’s flat excise gas tax of 18 cents-per-gallon), calculated by multiplying the statewide average retail price per gallon of the previous month (provided by Oil Price Informa – tion Service) by 7 percent, and then rounding to the nearest one-tenth of 1 cent. Tax is collected when a qualified gasoline distributor sells to a nonqualified distributor, and the tax is then included in gas price at the pump.

*Federal funding percentages are from an ARTBA analysis of FHWA Highway Statistics data, total ten year average 2004-2013 from tables SF-1 and SF-2. The percent is the ratio of federal aid reimbursements to the state and total state capital outlays and is indicative of the importance of the federal aid program to state capital spending for highways and bridges. Does not include local capital spending. Federal highway reimbursements are primarily used for capital outlays, including construction, right of way and engineering, but are also used for debt service for GARVEE bonds.