The sorry State of transportation funds.
Position | STATESTATS |
High gas prices are bringing the demand for oil to a five-year low, according to the American Petroleum Institute. That's not good for state transportation budgets. They rely on funding from the federal Highway Trust Fund (which relies heavily on an 18.3-cents-a-gallon federal gasoline tax) and state gasoline taxes, which average 18.4 cents a gallon. Even before the recent high gas prices, many states were struggling to pay for much-needed highway and transit projects. Now they are faced with lower revenues and higher project costs. Alaska, awash in tax revenues and royalties from high crude oil prices, has suspended its state gas tax for a year; it already was the lowest in the country.
GASOLINE TAXES
Combining federal, state and local gas taxes, California, Connecticut and Illinois have the highest gas taxes in the nation. New Jersey, Wyoming and Alaska have the lowest.
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HIGHWAY TRUST FUND
The federal fund gets most of its revenue from gas taxes. The recently enacted $8 billion transfer from the general fund into the highway account of the Highway Trust Fund has resulted in the continuation of full reimbursement to states
Sales tax on diesel 28% Sales taxes on gas and other fuels not including diesel 58% Excise tax on heavy vehicle tires 2% Sales of heavy vehicles 9% Use tax on heavy vehicles 3% Source: Stateline.org. and the Joint Committee on Taxation, July 2008. Note: Table made from pie chart. CURRENT STATE GAS PRICE...
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