Gasoline Excise Tax Explained: Legal Insights and Implications

Definition & Meaning

The gasoline excise tax is a specific tax imposed on the purchase of gasoline. This tax is paid by consumers to the government and is designed to cover various aspects related to the manufacture, sale, and use of gasoline. In some countries, this tax also applies to gasoline intended for transportation purposes. The revenue generated from this tax is often used to fund infrastructure projects, such as road maintenance and public transportation systems.

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Real-world examples

Here are a couple of examples of abatement:

For instance, a driver filling up their vehicle at a gas station pays a gasoline excise tax as part of the total price. This tax contributes to state and federal funding for road repairs and public transit systems. Another example (hypothetical example) could involve a trucking company that pays a higher excise tax due to the volume of gasoline consumed for transporting goods.

State-by-state differences

State Gasoline Excise Tax Rate
California $0.87 per gallon
Texas $0.20 per gallon
New York $0.47 per gallon

This is not a complete list. State laws vary, and users should consult local rules for specific guidance.

What to do if this term applies to you

If you are a consumer purchasing gasoline, simply be aware that the excise tax is included in the price you pay at the pump. If you are a business owner involved in the sale of gasoline, ensure that you are compliant with local tax regulations and consider utilizing US Legal Forms for necessary tax forms or templates. If you have complex tax questions, consulting a tax professional may be beneficial.

Key takeaways