Alaska |
Alaska Stat. §43.40.010 (tax)
Alaska Const. Art. IX, §7 (dedication)
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No. The Alaska constitution prohibits dedication of any revenues to any special purpose.
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The tax rate on fuel containing ethanol is $0.06 per gallon less than the tax rate on other motor fuels in certain geographic areas. The reduced rate is only in effect during months in which fuel containing ethanol must be sold, transferred or used in an effort to reduce carbon monoxide emissions and attain federal or state air quality standards.
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Arkansas
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Ark. Stat. Ann. §26-62-201 (tax)
Ark. Stat. Ann. §26-62-109 (dedication)
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Partial. After a 3 percent set-aside, 70 percent of remaining revenue is deposited in the State Highway and Transportation Department Fund.
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Excise taxes on alternative fuels are imposed on a gasoline gallon equivalent basis. The rate for each alternative fuel type is based on the number of vehicles licensed in the state using that type of fuel and ranges from $0.050 to $0.165 per gasoline gallon equivalent.
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California
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Cal. Rev. & Tax. Code §8651 et seq. (tax)
Cal. Rev. & Tax. Code §9301 (dedication)
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Yes.
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Excise taxes on alternative fuels are $0.07 per cubic feet for compressed natural gas; $0.06 per gallon for liquefied natural gas; $0.06 per gallon for propane; and half of the current tax on gasoline and diesel for ethanol and methanol fuel blends containing up to 15 percent gasoline or diesel. In addition, California is one of four states that provides the option of purchasing an annual decal in lieu of paying the excise tax.
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Georgia
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Ga. Code Ann. §48-9-3 (tax)
Ga. Const. Art. 3, §9 ¶VI (dedication)
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Yes.
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Distributors of motor fuels, including special fuels, are subject to an excise tax of $0.075 per gallon, or per gasoline gallon equivalent.
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Hawaii
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Hawaii Rev. Stat. §243-4 (tax) |
No.
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Distributors of alternative fuels must pay a license tax of $0.0025 per gallon of fuel sold or used, plus an additional license tax depending on the type of alternative fuel.
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Idaho
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Idaho Code §63-2407 (tax)
Idaho Code §63-2412 (dedication)
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Yes.
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Special fuels are subject to the same tax rates as other motor fuels, being $0.25 per gallon or per gasoline gallon equivalent. Special fuels include compressed natural gas, liquefied natural gas, liquefied petroleum gas and hydrogen. In addition, Idaho is one of four states that provides the option of purchasing an annual decal in lieu of paying the excise tax.
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Illinois
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Ill. Ann. Stat. ch. 35, §105/3-10 (tax)
Ill. Ann. Stat. ch. 35, §5/20-101 (dedication)
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Yes.
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Sales and use taxes apply to only 80 percent of the proceeds from the sale of fuels containing 10 percent ethanol (E10) until Dec. 31, 2018. Reverts to 100 percent of proceeds if the tax rate is imposed at a rate of 1.25 percent. Sales and use taxes do not apply to fuels containing between 70 and 90 percent ethanol until Dec. 31, 2018.
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Kansas
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Kan. Stat. Ann. §79-34,141 (tax)
Kan. Stat. Ann. §79-34,142 (dedication)
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Partial. The production accounts of the Kansas qualified agricultural ethyl alcohol producer incentive fund are allocated $875,000 each calendar quarter. Of the remaining revenue, 66.37 percent goes to the State Highway Fund and 33.63 percent to the Special City and County Highway Fund.
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The minimum motor vehicle fuel tax rate on E85 ethanol fuel is $0.17 per gallon, on liquefied petroleum gas (propane) the rate is $0.23 per gallon, and on special fuels the rate is $0.26 per gallon. The conventional motor fuel tax rate is $0.24. (Note: ”Special fuels” means all combustible liquids suitable for the generation of power for the propulsion of motor vehicles including, but not limited to, diesel fuel, alcohol and such fuels not defined under the motor-vehicle fuels definition.) In addition, Kansas is one of four states that provides the option of purchasing an annual decal in lieu of paying the excise tax. Users of propane-powered vehicles who do have a decal can pre-pay their propane tax annually on a mileage basis or pay it monthly on a mileage basis; users with no decal must pay the $0.23 per gallon tax at the time of fueling.
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Louisiana |
La. Rev. Stat. Ann. §§47:801 et seq. (tax and dedication)
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Partial. The revenues are credited to the Bond Security and Redemption Fund and can only be used to fund projects of the Highway Priority Program, the Parish Transportation Fund, the Statewide Flood-Control Program and the Parish Bridge Replacement Program.
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The tax rate for all special fuels except compressed natural gas and liquefied petroleum gas (propane) is $0.16 per gallon. Owners or operators of vehicles fueled by compressed natural gas or propane that weigh less than 10,000 pounds may either pay an annual flat rate of $120 per vehicle or a variable rate of 80 percent of the current special fuels tax rate; owners or operators of such vehicles weighing more than 10,000 pounds must pay 80 percent of the special fuels tax rate, but not less than $120 per vehicle per year. The flat rates are based on the special fuels tax rate of $0.16 per gallon and specified miles per gallon values for each vehicle type, and are subject to change.
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Maine
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Maine Rev. Stat. Ann. tit. 36, ch. 45, §3203 (tax)
Maine Rev. Stat. Ann. tit. 36, ch. 459, §3219 (dedication)
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Yes.
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Blended fuels that contain at least 10 percent gasoline or diesel are taxed at the full tax rates for gasoline ($0.30 per gallon) or diesel ($0.312 per gallon). Tax rates on qualifying alternative fuels are $0.30 per gallon for E85; $0.312 per gallon for biodiesel blends of up to 90 percent; $0.287 for biodiesel blends of 90 - 100 percent; $0.219 per gallon for propane or liquefied petroleum gas; $0.243 per 100 cubic feet for compressed natural gas; $0.07 per 100 cubic feet for hydrogen; and $0.208 per 100 cubic feet for hydrogen compressed natural gas.
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Michigan
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Mich. Comp. Laws §207.1008 (tax)
Mich. Const. art. IX, §9 (dedication)
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Yes.
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A tax of $0.12 per gallon is imposed on gasoline containing at least 70 percent ethanol (E70) and diesel fuel containing at least 5 percent biodiesel (B5).
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Minnesota
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Minn. Stat. §296A.07 and §296A.08 (tax)
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No.
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An excise tax is imposed on the first licensed distributor that receives alternative fuels. Tax rates on qualifying alternative fuels are $0.1775 per gallon for E85; $0.1425 per gallon for M85 (a methanol blend); $0.1875 per gallon for liquefied petroleum gas or propane; $0.15 per gallon for liquefied natural gas; and $0.25 per gasoline gallon equivalent for compressed natural gas. All other gasoline is taxed at the rate of $0.25 per gallon.
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Mississippi
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Miss. Code Ann. §27-59-11 and §65-39-35 (tax)
Miss. Code Ann. §27-5-101 (dedication)
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Partial. After set asides, revenue is deposited in the State Aid Road Construction Fund and the State Highway Fund.
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A tax at the rate of $0.18 per one hundred cubic feet until the date specified in Miss. Code Ann. §65-39-35 and $0.144 per one hundred cubic feet thereafter, is levied on distributors of compressed gas or liquefied natural gas for use in a motor vehicle.
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Montana
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Mont. Code Ann. §15-70-711 (tax)
Mont. Code Ann. §15-70-101 (dedication)
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Yes.
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Retail sales for compressed natural gas and liquefied petroleum gas are subject to a modified tax based on energy content. (Also see Chart 2 for exemptions.)
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Nebraska
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Neb. Rev. Stat. §§66-6,102 et seq. (tax)
Neb. Rev. Stat. §66-6,108 (dedication)
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Yes.
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An excise tax of $0.075 per gallon or per gasoline gallon equivalent is imposed on all compressed natural gas, liquefied natural gas and liquefied petroleum gas (propane) sold for use in motor vehicles.
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Nevada
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Nev. Rev. Stat. §366.190
Nev. Rev. Stat. §366.700 (dedication)
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Yes.
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Special fuels, including biodiesel blends, have a reduced tax rate of $0.27 per gallon. Liquefied petroleum gas and compressed natural gas are taxed at a rate of $0.22 and $0.21 per gallon respectively.
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New Jersey
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N.J. Stat. Ann. §54:39-102 (definitions)
N.J. Stat. Ann. §54:39-103 (tax)
N.J. Const. art. VIII, §2 (dedication)
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Yes.
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Gasohol, ethanol, methanol, fuel grade alcohol and other blended fuels are taxed at the same rate as other motor fuels ($0.105 per gallon); kerosene and biodiesel are taxed at the same rate as other diesel fuel ($0.135 per gallon). Liquefied petroleum gas is taxed at half the rate of gasoline, or $0.0525 per gallon.
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New Mexico
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N.M. Stat. Ann. §7-16B-4 (tax)
N.M. Stat. Ann. §7-1-6.10 (dedication)
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Partial. Tax receipts go to the State Road Fund, the State Aviation Fund, the Motorboat Fuel Tax Fund, local governments, qualified tribes and the General Fund.
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Liquefied petroleum gas, propane, compressed natural gas and liquefied natural gas are subject to a $0.12 per gallon excise tax. In addition, New Mexico is one of four states that provides the option of purchasing an annual decal in lieu of paying the excise tax. (Also see Chart 2 for exemptions.)
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North Dakota
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N.D. Cent. Code §57-43.2-03 (tax)
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No.
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A special excise tax rate of 2 percent is imposed on the sale of liquefied petroleum gas and a tax of $0.04 per gallon is imposed on all special fuel sales, including compressed natural gas.
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Oklahoma
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Okla. Stat. Ann. tit. 68, §500.4 (tax)
Okla. Stat. Ann. tit. 68, §500.6 (dedication)
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Yes.
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The tax rate on compressed natural gas is $0.05 per until Jan. 1, 2015, and $0.13 per gasoline gallon equivalent thereafter.
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Pennsylvania |
Pa. Cons. Stat. Ann. tit. 75, §9004(d) (tax)
Pa. Const. art. VIII, §11 (dedication)
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Yes. The state constitution dedicates all proceeds from gasoline and other motor fuel excise taxes to highway and bridge purposes.
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Alternative fuels used to propel vehicles on highways are subject to the alternative fuels tax. Alternative fuels include any other fuel not otherwise taxable as liquid fuels, including natural gas, propane, alcohols, gasoline-alcohol mixtures containing at least 85 percent alcohol by volume, hydrogen and electricity. The rate of the excise tax is computed on a gasoline gallon equivalent basis; the tax applied to each gasoline gallon equivalent equals the current liquid fuels tax and oil company franchise tax applicable to one gallon of gasoline.
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South Carolina
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S.C. Code Ann. §12-28-310 and §12-36-2150(15) (tax)
S.C. Code Ann. §§12-28-2710 et seq. (dedication)
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Partial. Revenue is dedicated to the state Department of Transportation, mass transit, the County Transportation Fund, the State Highway Fund and the state Department of Natural Resources.
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Alternative fuels and blended fuels are subject to a state fuels user fee of $0.16 per gallon. However, they are exempt from the state sales and use tax.
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South Dakota
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S.D. Codified Laws Ann. §§10-47B-3 to 10-47B-10 (tax)
S.D. Const. art. XI, §8 and S.D. Codified Laws Ann. §10-47B-148 (dedication)
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Yes.
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The biodiesel and biodiesel blends tax rate will be reduced from $0.22 per gallon to $0.20 per gallon when production facilities in the state reach a specified capacity and production level. Ethyl alcohol and methyl alcohol motor fuels are taxed at a rate of $0.08 per gallon. Compressed natural gas is taxed at a rate of $0.10 per gallon, and liquefied petroleum gas at a rate of $0.20 per gasoline gallon equivalent. (Also see Chart 2 for exemptions.)
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Tennessee
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Tenn. Code Ann. §§67-3-1101 et seq. (tax)
Tenn. Code Ann. §67-3-905 and §67-3-908 (dedication)
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Partial. After a set aside to the General Fund, revenue is apportioned to County Highway Funds, municipalities and the State Highway Fund.
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A use tax of $0.14 per gallon for liquefied gas and $0.13 per gallon for compressed natural gas is imposed when the fuel is used for operating a motor vehicle. Users of liquefied gas must also pay an additional pre-paid, flat rate annual vehicle tax; users of compressed natural gas must also purchase an annual permit.
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Utah
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Utah Code Ann. §59-13-301 (tax)
Utah Code Ann. §59-13-301 (dedication)
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Yes.
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Imposes a reduced-rate fuel tax of $0.085 per gasoline gallon equivalent on liquefied natural gas and compressed natural gas used for motor vehicle operation. This rate will be modified proportionally with any changes to the traditional motor fuel rate.
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Virginia
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Va. Code §58.1-2249 (tax)
Va. Code §58.1-2289 (dedication)
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Yes.
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Levies a tax at the rate of $0.175 per gallon on liquid alternative fuel and other alternative fuels used to operate a highway vehicle. (Also see Chart 2 for exemptions.)
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Wisconsin
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Wis. Stat. Ann. §78.40 (tax)
Wis. Stat. Ann. §25.40 (dedication) |
Yes.
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The tax rate on propane is $0.226 per gallon and the tax rate on compressed natural gas is $0.247 per gallon. (Also see Chart 2 for exemptions.)
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