Bloomberg BNA: Higher Gas Prices May Mean Paying States More in Taxes

As a result, a few states will see revenue gains from higher prices because their tax rates are tied to the price of fuel, rather than its volume, Carl Davis, research director for the left-leaning Institute on Taxation and Economic Policy, told Bloomberg Tax.

Those states include California, Connecticut, Kentucky, Maryland, Nebraska, New Jersey, New York, North Carolina, Pennsylvania, Utah, Vermont, Virginia, and West Virginia. The District of Columbia also taxes by the gallon.

“But each of these states has unique quirks in its gas tax formulas, like ceilings or floors on the tax rate, that could prevent gas tax increases,” Davis said. “So it’s not accurate to say that they’ll all see higher revenue collections.” Read more

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