Gasoline Tax

A per unit tax levied on the sale of motor fuel purchased statewide. The gasoline tax is levied by the state and remitted monthly to local jurisdictions based on the proportionate share of the total population.

Discussion

The gasoline tax rate is $0.17 per gallon. In 1992, the tax rate increased by $0.02 per gallon. Additional $0.02 per gallon increases followed in 1994 and 1996. Each of these changes added about million dollars to the City's share of gasoline tax revenues. In addition, the City receives a share based on its status as both a city and a county. The new "county" share is worth approximately $400,000 in the current fiscal year. A portion of the additional revenues, currently $1,750,000, is dedicated to the Capital Improvements Fund for street and bridge projects.