Gasoline Prices and Taxes

Good evening, I have a question concerning State Gasoline taxes and the effect that it has on the total price at the pump.

I have lived in Middle Georgia since 1974 and was raised in North Carolina. I have relatives in North Carolina and continue to visit about 4 time per year. When I first began the trips I would stop in the northern part of Ga to fill the tank since S.C. and N.C. prices were approximately 10-12 cents per gallon higher because of the gasoline tax. Now the prices are almost equal. Are the states with lower taxes making more profits or did I miss something with all of the new laws being passed.

I am attaching a link to a site that has some info about each state>

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Thanks for your inputs..

cil

Reply to
CIL
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Actually some states have lowered gasoline tax - I know Illinois did that last time we had an increase. Not sure if it went back or not.

Reply to
Dan J.S.

"CIL" wrote in message news:RUsvg.11738$PO.896@dukeread03...

I don't think you missed anything. I suspect that at the border the prices tend towards each other. Stations in NC probably hold prices down to remain competitive with stations across the border since most savvy travelers buy gas in SC or GA in expectation of lower prices (plus people close to the border can just drive over for lower prices). In GA and SC they probably make more money per gallon, since the demand is higher because many people buy in those states in an attempt to avoid the higher NC taxes. Last time I was in SC, the prices were lower as you got away from I-95, the NC border, and the resort areas. Also note that the Georgia's tax includes an additional 4% on top of the fixed $0.075. So with $3.00 gas, the GA tax is actually closer to $0.19 than $0.075. NC also includes a variable portion to the tax, although they suspended the last update in a political move designed to fool state residents into thinking they were helping with the gas prices while at the same time planning to screw million of residents by adding tolls to existing roads. NC politicians have been diverting significant portions of the gas tax revenue to other budget items and now they need money to fix the crumbling over-crowded roads. I don't know why people aren't mad about this. NC used to have a good road system, based completely on gas tax revenues. Now it is a crumbling mess despite the fact that gas tax revenues are historically very high.

Ed

Reply to
C. E. White

Not too privy to information about state's using money wisely, so I'm guessing some states are less efficient at wasting money. Therefore they don't have to rape the tax payer(or gas consumer in this case) as much.

Just a guess.

tom

Reply to
Tom The Great

When you add the federal tax of 18.5 cents a gallon it become apparent WHO makes the most profit on every gallon one buys. Not the oil companies, or the station owners, that's for sure LOL

mike

Reply to
Mike Hunter

Some states have many more mile of highways, as well. Pennsylvania for example has more miles of state owed roads than all of the New England states, NY, NJ and Delaware combined

mike hunt

Reply to
Mike Hunter

Okay, what did I miss? I assume all states are required to pay

Fed tax..

How are the prices set?

Georgia Prices

Commodity price is approximately 2.34

Fed tax is .185

Ga tax is .075

Plus .04 per gallon

2.64 plus what ever the profit is

N.C. Prices

Commodity price is approximately 2.34

Fed tax is .185

N.C. tax is .245

2.787 plus what ever the profit is

But if you go to the pumps in each state (N.C. & Ga) the prices are within a nickel of each other??

Reply to
CIL

Guess what? Georgia just increased the state tax on highway fuels. And, it currently has an estimated 1 BILLION dollars in windfall tax revenue income to boot. All this, and Gov. Sonny Perdue refused to hold the tax increase that took effect on July 1,2006. Don'cha just love government?

"CIL" wrote in news:RUsvg.11738$PO.896@dukeread03:

Reply to
ccoles

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