Nebraska’s Gas Tax is Out of Control

Jul 10, 2014 by AFP

New information released today from the American Petroleum Institute shows how much gasoline is taxed in each state. Unfortunately for Nebraska, our state gas tax burden is much too high. Nebraskans are currently taxed 27.3 cents per gallon.

When you add in federal excise taxes, each Nebraskan driver is paying 45.7 cents per gallon. This rate is completely out of control and we can’t afford to maintain this tax burden — especially since gas taxes are regressive, harming the least fortunate drivers most.

The revenue from federal gas taxes goes to the Highway Trust Fund. The fund is then supposed to be used to build and maintain roads and other transportation projects. Instead federal gas tax dollars are being used to fund inherently local projects in other states, such as subsidizing subway rides in New York City and building bike paths in San Francisco.

The Highway Trust Fund is drying up, but President Obama’s proposed bill would perpetuate bad spending practices. Instead, states should call to take back control of funding and managing their own transportation priorities. Nebraskans’ gas tax dollars should be spent improving roads and bridges here in the Cornhusker State.

Nebraska’s fuel tax rate is subject to change every 6 months, but perhaps this would be unnecessary if more decisions were left in the hands of Nebraskans. Please see the map below to see where Nebraska stands concerning the state gas tax.