In 2019 entrepreneurs will see the impact of rising fuel
taxes on their businesses.
So far States such as Alabama, Arkansas, Illinois and Ohio
have enacted gas tax increases.
Virginia is close to enacting an increase that will
only apply to a portion of the state.
The federal tax on gasoline is currently 18.4 cents per
gallon for unleaded and 23.4 cents for diesel.
State fuel taxes are imposed in addition to the
federal fuel tax.
These increases will not only affect businesses in
the transportation industry but all products being
transported through states with higher fuel cost will likely
be impacted as well.
Here are the increases per state:
On March 12, 2019, the Alabama Governor signed Act 2019-2
also known as the Rebuild Alabama Act.
This law raises the gas tax in Alabama by 10 cents.
The current gas tax is 18 cents and the current
diesel tax is 19cents.
The 10 cent increase will raise the gas tax to 28
cents and the diesel tax to 29.
Gas and diesel fuel will be raised by 6 cents on 1
It will increase by 2 cents on 1 October 2020 and again on 1
The last time the gas tax in Alabama was increased was 1992.
Arkansas passed a new law that increases the excise tax on
gas by 3 cents a gallon to 24.5 cents a gallon and the
excise tax on diesel by 6 cents a gallon to 28.5 cents a
gallon, effective Oct. 1.
The law indexes future tax increases so that the
maximum future increase would be 0.1 cents per gallon per
year, meaning a maximum of 1 cent every 10 years.
This marks the first increase on gasoline and diesel
tax approved by state lawmakers since 1999.
In Illinois Senate Bill 1939 (which is now law), hikes the
state’s motor fuel tax and vehicle registration fees.
The gas tax will go from 19 cents per gallon to 38
cents per gallon.
This will make it higher than California and New
hike in the fuel tax will be tied to inflation.
Increases will occur automatically without any
The gas tax increase will take effect 1 July 2019.
The law goes further by allowing local municipalities to add
further increases to the fuel tax.
It allows Chicago to add a 3 cent per gallon tax;
Lake and Will County to impose a 8 cent per gallon tax; and
DuPage, Kane and McHenry counties to add a 4-8 cents per
Hence, these locations will have the highest fuel tax in the
Ohio raised their fuel tax in 2019 as well.
There will be a 10.5 cents-per-gallon increase for
gas and 19 cents-per-gallon increase for diesel.
This will increase the gas tax from 28 cents per
gallon to 38.5 cents per gallon and the diesel tax will be
increased from 28 cents per gallon to 47 cents per gallon.
This increase takes 1 July 2019.
A law making its way through the Virginia legislation would
increase the fuel tax in Virginia as well.
Currently Virginia taxes gasoline at 22.4 cents per
gallon and diesel fuel at 23.7 cents per gallon along the
Interstate 81 corridor.
There are 11 million trucks that pass through the
Interstate 81 corridor every year.
In the new law being contemplated, the state tax on
diesel would rise to 40.5 cents per gallon over a three-year
Bill 1716 and House Bill 2718.