While millions of Americans are celebrating the New Year, one state will be raising state taxes on motor gasoline. Pennsylvania, a state in desperate need of a boost in funding for highways, bridges, and roads, passed a bipartisan bill that will raise the state gasoline tax to nearly 41-cents per gallon from approx. 31-cents per gallon in 2013. The 9.5-cent jump in gasoline is less than the 13ct/gal jump in diesel taxes.
According to sources, many fuel stations are expected to pass along the increase in gas taxes the moment it hits, which would be similar to what motorists in Virginia saw this past July.
Counter to Virginia, which actually lowered its gasoline tax while boosting sales tax, the move in Pennsylvania is likely to encourage more motorists to cross borders to buy cheaper gasoline in neighboring states.
Pennsylvania already has the second-highest gasoline price when comparing with its neighboring states, and the new gasoline tax may further solidify Pennsylvania's position there.
Overall, the new gasoline tax, will allow Pennsylvania to repair badly worn roads and bridges, which rank 39th in the nation, according to the Reason Foundation's Annual Highway Report, issued this year. In addition, Pennsylvania was ranked as #9 for states with the most bridges, at 22,176.
GasBuddy believes gasoline prices will rise New Years Day to reflect the increase in gasoline taxes, so motorists there beware.
For motorists, not driving in Pennsylvania,
we recently wrote an article on the status of other states looking at raising or adjusting gas taxes.