Motor Fuel Tax Update for First Quarter of 2023

A number of states have updated their motor fuel tax rates and related fees effective in the first quarter of 2023. Weaver will monitor these actions and update this post regularly throughout the quarter.

Delaware Reduces Hazardous Substance Cleanup Tax

Delaware’s Hazardous Substance Cleanup Act rate was reduced from 1.675 percent to 0.8389 percent, effective January 1, 2023.

Florida Posts Motor Fuel Rates for 2023

Florida’s motor fuel tax on gasoline is $0.35225 per gallon (up from $0.33425 per gallon) and the motor fuel tax on diesel is $0.361 per gallon, (up from $0.343 per gallon) effective January 1, 2023.

Georgia Posts Retail Prices to Calculate Fuel Tax

Georgia posted the average retail prices on which the calculation of the prepaid local tax on fuel is based. For the first half of 2023, the average retail prices of gasoline, diesel, aviation gasoline and special fuel (including CNG) is $3.00 per gallon. LPG is $2.992 per gallon.

Georgia Posts Fuel Tax Rates

Georgia posted its fuel tax rates for calendar year 2023. The new rates take effect once the excise tax comes into effect on January 11, 2023:

• Gasoline: $0.312 per gallon (up from $0.291 per gallon)
• Diesel: $0.350 per gallon (up from $0.326 per gallon)
• Aviation Gasoline: $0.010 per gallon (unchanged)
• LPG: $0.312 per gallon (up from $0.291 per gallon)
• CNG: $0.312 per gallon (up from $0.291 per gallon)

Illinois Posts Fuel Taxes

Illinois set its prepaid sales tax on fuel for the first quarter of 2023 at $0.23 per gallon for all motor fuels, including, gasoline, gasohol, and biodiesel blends between 1 percent and 10 percent. This rate is unchanged from the second quarter of 2022.

The Illinois Motor Fuel Tax rates from January 1, 2023, through June 30, 2023 are as follows:

• Diesel: $0.498 per gallon (up from $0.467 per gallon)
• Gasoline: $0.423 per gallon (up from $0.392 per gallon)
• LPG: $0.498 per gallon (up from $0.467 per gallon)
• LNG: $0.498 per gallon (up from $0.467 per gallon)
• CNG: $0.423 per gallon (up from $0.392 per gallon)

Massachusetts Sets 1Q Fuel Tax Rates

Massachusetts set its fuel tax rates for the first quarter of 2023 as follows:

• Gasoline: $0.24 per gallon (unchanged)
• Diesel: $0.24 per gallon (unchanged)
• Jet Fuel: $0.173 per gallon (down from $0.234 per gallon)
• Aviation Gasoline: $0.382 per gallon (down from $0.436 per gallon)
• LPG and Propane: $0.292 per gallon (up from $0.285 per gallon)

Michigan Issues Fuel Tax Rates

Michigan issued fuel rates that are effective January 1, 2023.

• The inflation-adjusted tax rate imposed on motor fuel under the MFTA for the tax period beginning January 1, 2023, through December 31, 2023, is 28.6 cents-per-gallon (the prior year rate of 27.2 cents per gallon x 1.05 = 28.6 cents per gallon)
• The tax rate applicable to alternative fuel under the MFTA is also 28.6 cents-per-gallon (or per gallon equivalent) for the tax period beginning January 1, 2023, through December 31, 2023
• The fuel tax rates under MCL 207.212(6) for motor carriers licensed or otherwise subject to the International Fuel Tax Agreement is 28.6 cents per gallon (or gallon equivalent) of motor fuel and alternative fuel for the tax period beginning January 1, 2023, through December 31, 2023

Nebraska Sets Fuel Tax Rates For First Half of 2023

Nebraska set its fuel tax rates for January to June 2023 at $0.29 per gallon for gasoline, gasohol, diesel, ethanol and compressed gas (this is up from $0.248 per gallon). There is no change to the rates for aviation gasoline and jet fuel.

New Jersey Sets Petrol Products Gross Receipts Tax

New Jersey’s petroleum products gross receipts tax rates for Q1 2023 are unchanged as follows:

• Gasoline: $0.309 cents per gallon
• LPG: $0.309 cents per gallon
• Diesel: $0.349 cents per gallon
• Fuel oil: $0.124 cents per gallon
• Aviation fuel: $0.04 cents per gallon
• Other: 7 percent of gross receipts.

New York Sets Motor Fuel Tax Rates

New York’s motor fuel tax rates, effective January 1, 2023, are unchanged. The gasoline tax remains $0.0805 per gallon. The diesel tax remains $0.08 per gallon. The petroleum business tax on other motor fuel products increased, effective January 1, 2023 as follows:

• Motor Fuel: $0.181 per gallon (up from $0.173 per gallon)
• Diesel: $0.1635 per gallon (up from $0.1555 per gallon)
• Jet Fuel: $0.073 per gallon (up from $0.07 per gallon)

North Carolina Increases Fuel Tax Rates for 2023

North Carolina increased its motor fuels and alternative fuels tax rates from 38.5 cents to 40.5 cents per gallon for January 1, 2023, through December 31, 2023. The inspection tax will remain at .0025 cents per gallon.

Ohio Sets 1Q Prices for Petroleum Activity Tax

Ohio set the average wholesale prices of fuel for determining the Petroleum Activity Tax (PAT) for the first quarter of 2023 as follows:

• Gasoline: $2.813 per gallon with a tax rate of $0.0182845 per gallon
• Diesel: $3.821 per gallon with a tax rate of $0.0248365 per gallon
• Propane: $1.086 per gallon with a tax rate of $0.007059 per gallon

Pennsylvania Issues Motor Fuel Tax Rates

Pennsylvania set its motor fuel tax rates as follows:

• Gasoline: $0.611 per gallon (up from $0.576 per gallon)
• Diesel: $0.785 per gallon (up from $0.742 per gallon)
• Aviation Fuel: $0.06 per gallon (unchanged from 2022)
• Jet Fuel: $0.02 per gallon (unchanged from 2022)

For alternative fuels, the tax rates will be as follows:

• Ethanol: $0.408 per gallon (up from $0.384 per gallon)
• Methanol: $0.306 per gallon (up from $0.289 per gallon)
• LPG/Propane: $0.451 per gallon (up from $0.425 per gallon)
• E-85: $0.438 per gallon (up from $0.413 per gallon)
• M-85: $0.352 per gallon (up from $0.332 per gallon)
• CNG & Hydrogen: $0.611 per gallon (up from $0.576 per gallon)

West Virginia Sets 2023 Motor Fuel Tax Rate

West Virginia set its motor fuel tax rate for calendar year 2023 at $0.372 per gallon, up from $0.357 per gallon in 2022. The rate includes a flat rate of $0.205 per gallon as well as a variable rate based on the average wholesale price of the fuel. For CNG, the tax rate is $2.239 per 1,000 cubic feet (or $0.284 per 126.67 cubic feet when converted to gasoline gallon equivalent). For LNG, the tax rate is $0.183 per gallon. For LPG, the tax rate is $0.210 per gallon.

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