GAS TAX: YOU’RE PAYING 6 CENTS EXTRA PER GALLON NOW
Gas is 6 cents a gallon more expensive than it was last week, but that increase comes from new taxes in Alabama.
The increase in revenue – the first since the early 1990s — will fund road and bridge improvements throughout the state. It’s the first tax hike on the way to a 10-cent increase.
Alabama resident Noah Edge said he’s not too keen on paying extra.
“It creates a very serious problem,” he said. “Money that should be budgeted for things that would usually be food or shelter is going to have to go to gas. I feel everyone needs gasoline, so why tax that?”
State and local residents on tight budgets may be forced to cut their driving time or cut another expense in the tax’s wake.
Including the recent hike, Alabama’s tax rate is 24 cents a gallon for regular gas and 25 cents for a gallon for diesel. The federal gas tax is 18.4 cents a gallon, and the gas tax in other states ranges from less than 15 cents in Alaska to nearly 60 cents in Pennsylvania.
Once the tax reaches 10 cents a gallon, it will generate about $320 million a year. Alabama Gov. Kay Ivey, who came up with the tax plan, said that money will be used to build safer roads.