STATE TAX CHANGES – JULY 2019*

Jun 24, 2019

* This list contains key State updates taking effect in July 2019.  This is not intended to be an exhaustive list.  Please confirm all tax rates and license and reporting requirements with the particular State or your tax consultants.

ALABAMA

Effective September 1, 2019 the tax on gasoline will increase to $0.24 per gallon and the tax on undyed diesel will increase to $0.25 per gallon. These taxes will increase again in October 2020, 2021 and 2023 and will then increase annually thereafter in July. There will be a floor stocks tax imposed on any motor fuel held in non-bulk inventory at the time of the tax increase; the floor stocks tax return will be due on or before December 31, 2019 for the September 2019 increase. Additionally, the due date for the motor fuel tax return is changing from the 22nd of the month to the 20th of the month.

CALIFORNIA

The prepaid sales tax rates effective July 1, 2019 are $0.06 per gallon for gasoline, $0.32 per gallon for diesel and $0.106 per gallon for jet fuel.

The gasoline tax will increase to $0.473 per gallon effective July 1, 2019. There are no changes to the diesel or jet fuel tax rates. The notice announcing the increase can be found at: https://www.cdtfa.ca.gov/formspubs/l633.pdf

CONNECTICUT

Effective July 1, 2019, Connecticut’s tax on diesel will be increased to $0.465 per gallon.

FLORIDA

Effective July 1, 2019, air carriers engaged in commercial aviation are entitled to receive a refund of $0.0142 per gallon of the taxes imposed on aviation fuel purchased by such air carrier, provided that the total refund including that under Fl. Stat. 206.9855 (a refund of up to 0.6% of wages paid by an air carrier to employees in Florida) does not exceed the total aviation fuel tax rate of $0.0427.

The tax rate used by contractors who manufacture and use asphalt during fiscal year July 1, 2019 through June 30, 2020 will increase from 77 cents per ton to 81 cents per ton.

GEORGIA

The average retail prices for the prepaid local tax for the period July 1, 2019 through December 31, 2019 have been set as follows:

https://dor.georgia.gov/sites/dor.georgia.gov/files/related_files/document/LATP/Policy%20Bulletin/Bulletin%20-%20Prepaid%20Local%20Tax%20-%20July%201%202019.pdf

 Fuel Type  Average Retail Price 
Gasoline $2.406 per gallon
Diesel $2.683 per gallon
Aviation Gasoline $3 per gallon
LPG $1.954 per gallon
Special Fuel (including CNG) $2.330 per gallon

ILLINOIS

Subject to signature by the governor, Illinois’s fuel tax is set to increase on July 1 to $0.38 per gallon with the rate adjusted annually. The tax rate for diesel will be an additional $0.075 per gallon for a total of $0.455 per gallon.

Illinois has set its prepaid sales tax on motor fuel at $0.15 per gallon for gasoline, gasohol and other motor fuels such as diesel and at $0.12 per gallons for biodiesel (blends between 1% and 10%).  These rates are for the period July 1, 2019 – December 31, 2019.

INDIANA

The Gasoline Use Tax Rate for the month of July 2019 has been set at $0.156 per gallon. This rate is adjusted monthly.

Effective July 1, the Indiana excise tax will increase to $0.30 per gallon for gasoline and $0.49 per gallon for diesel.

IOWA

Iowa is changing its tax rates effective July 1, 2019 as follows:

 Fuel Type  Tax Rate 
Gasoline $0.305 per gallon
Alcohol & Ethanol Blended Gasoline (inc. E85) $0.290 per gallon
Diesel (inc. B1 – B10) $0.325 per gallon
B11 or Higher $0.295 per gallon
Aviation Fuel $0.05 per gallon
Aviation Gasoline $0.08 per gallon
Liquefied Petroleum Gas (LPG) $0.30 per gallon
Liquefied Natural Gas (LNG) $0.325 per gallon
Compressed Natural Gas (CNG) $0.31 per gallon

MARYLAND

Maryland has announced that its fuel tax rates for the period July 1, 2019 – June 30, 2020 will be as follows (the rate below is the combined motor fuel and sales and use tax equivalent rates):

 Fuel Type  Tax Rate 
Gasoline $0.3670 per gallon
Diesel $0.3745 per gallon
Aviation Fuel $0.07 per gallon

 

The full list of tax rates can be found at: https://taxes.marylandtaxes.gov/Business_Taxes/Business_Tax_Types/Motor_Fuel_Tax/Tax_Information/Motor_Fuel_Tax_Rates/MFT_RatesPerGallon_052119.pdf

MASSACHUSETTS

Massachusetts has set its tax rates for the period July 1, 2019 – September 30, 2019 as follows:

 Fuel Type  Tax Rate 
Gasoline $0.24 per gallon
Diesel $0.24 per gallon
Aviation Gasoline $0.253 per gallon
LPG and Propane $0.221 per gallon
Jet Fuel $0.101 per gallon

MICHIGAN

Michigan has set its prepaid sales tax on fuel for the month of July 2019 at $0.148 per gallon for gasoline and $0.16 per gallon for diesel.  The rate is adjusted monthly.

MINNESOTA 

The Minnesota Petroleum Tank Cleanup Fee will be reinstituted for the months of July, August, September and October 2019. The rate is $0.02 per gallon.

MONTANA

Effective July 1, 2019, Montana’s fuel tax on gasoline is unchanged at $0.315 per gallon and the fuel tax on special fuel is also unchanged at $0.2925 per gallon.  These rates are adjusted annually through 2022.

NEBRASKA

Effective July 1, 2019 Nebraska’s motor fuel tax will increase from $0.296 per gallon to $0.297 per gallon.

NEVADA

The Washoe County Producer Price Index gross tax rate for FY 2020 for gasoline will be $0.3322060 and the gross tax rate for diesel will be $0.3157421. The Clark County Producer Price Index gross tax rate for FY 2020 for gasoline will be $0.1345617 and the gross tax rate for diesel will be $0.1344199.

NEW JERSEY

New Jersey’s petroleum products gross receipts tax rates for the period July 1, 2019 – September 30, 2019 have been set at $0.309 per gallon for gasoline and LPG, $0.35 per gallon for diesel, $0.124 per gallon for fuel oil and $0.04 per gallon for aviation fuel.  Full details can be found at: http://www.state.nj.us/treasury/taxation/pdf/other_forms/petroleum/Petroleumgrosstax.pdf

OHIO

Effective July 1, 2019, the Ohio motor fuel tax will increase to $0.385 per gallon for gasoline and to $0.47 per gallon for other motor fuels. In addition, a tax on compressed natural gas will be phased in from 10¢ per gallon equivalent starting July 1, 2019 to 47¢ per gallon equivalent on and after July 1, 2023 as follows:

  • 10¢ per gallon equivalent on and after July 1, 2019, and before July 1, 2020;
  • 20¢ per gallon equivalent on and after July 1, 2020, and before July 1, 2021;
  • 30¢ per gallon equivalent on and after July 1, 2021, and before July 1, 2022;
  • 40¢ per gallon equivalent on and after July 1, 2022, and before July 1, 2023; and
  • 47¢ per gallon equivalent on and after July 1, 2023.

A “gallon equivalent” is defined as 139.30 cubic feet or 6.38 pounds.

From July 1, 2019 through June 30, 2021, the temporary reduction in motor fuel tax credits is continued, in which a temporary motor fuel tax evaporation allowance is set for motor fuel distributors at 1% (less 0.5% of the gallonage sold to retail dealers) and at 0.5% for retail dealers.

The Ohio Department of Taxation has issued the average wholesale price of fuel to be used when determining the gross receipts of a supplier subject to the petroleum activity tax (“PAT”) for the period July 1, 2019 – September 30, 2019.  The average wholesale prices are $1.526 per gallon for gasoline, $1.878 per gallon for diesel and $0.767 per gallon for propane.  With the PAT rate set at $0.0065, this makes the PAT for the third quarter of 2019 $0.009919 per gallon for gasoline, $0.012207 per gallon for diesel and $0.0049855 per gallon for propane.

RHODE ISLAND

Effective July 1, the tax rate on gasoline will increase to $0.34 per gallon. The tax will increase in accordance with the consumer price index every two years.

SOUTH CAROLINA

Effective July 1, 2019 South Carolina’s fuel tax will increase to $0.22 per gallon.  The rate will be adjusted annually through 2022.

TENNESSEE

Effective July 1, 2019, Tennessee’s fuel tax rates will increase as follows:

 Fuel Type  Tax Rate 
Gasoline $0.26 per gallon
Diesel $0.27 per gallon
CNG $0.21 per gallon
Liquefied Gas $0.22 per gallon

VERMONT

Vermont has set the Motor Fuel Transportation Infrastructure Assessment (MFTIA) for the third quarter at $0.0451 per gallon and the Gasoline and Motor Fuel Tax Assessment (MFTA) for the third quarter at $0.134 per gallon.

VIRGINIA

Virginia has announced that its tax rates will be unchanged for the period July 1, 2019 – December 31, 2019 and will be as follows:

Fuel Type  Tax Rate 
Gasoline $0.162 per gallon
Diesel $0.202 per gallon
Blended Fuels (Gasoline) $0.162 per gallon
Blended Fuels (Diesel) $0.202 per gallon
Aviation Fuel $0.05 per gallon (reduced to $0.005 per gallon after the first 100,000 gallons)
Alternative Fuel $0.162 gasoline gallon equivalent

The motor vehicle fuel sales tax rate for the period July 1, 2019 – December 31, 2019 is $0.076 per gallon for gasoline and alternative fuels and $0.077 per gallon for diesel.

WASHINGTON

Effective July 1, 2019, the Hazardous Substance Tax will shift to be measured as a volumetric excise tax for petroleum products. The rate will be set at $1.09 per barrel to be adjusted annually. Petroleum products that are not easily capable of being measured on a per barrel basis will continue to be taxed at the current 0.7% ad valorem rate. Petroleum products subject to the per barrel rate include: gasoline, diesel and aviation fuel. Petroleum products subject to the ad valorem rate include: ethane, propane and butane. More information can be found at: https://dor.wa.gov/find-taxes-rates/other-taxes/hazardous-substance-tax