Member Information
Get Connected
Reading/Career


Car-Insurance-Auto-Insurance.com

Post articles View all articles Print article

Fuel Tax


fuel tax (also known as a petrol tax, gasoline tax, gas tax or fuel duty) is a sales tax imposed on the sale of fuel.



A fuel tax (also known as a petrol tax, gasoline tax, gas tax or fuel duty) is a sales tax imposed on the sale of fuel. In the United States, the funds are often dedicated or hypothecated to transportation, or even roads, so that the fuel tax is considered by many a user fee. In other countries, the fuel tax is a source of general revenue.

In most countries the fuel tax is not imposed on fuel which is not intended for transportation: fuel used to power agricultural vehicles, and or home heating oil which is identical to diesel. This creates an economic incentive for illegal use of fuel.



Fuel Tax rates in US

Canada

The tax on fuel in Canada can vary greatly between provinces. On average, 40 to 50% of the total price of gas at the pump is tax. The federal government receives its share through the excise tax (10 ¢/L) and the Goods and Services Tax (7% of the whole price, taxes included - it is a tax on a tax). Most of the variation comes from the provincial tax. The lowest being the Yukon with 6.2 cents per litre and the highest being Newfoundland and Labrador with 16.5 cents per litre. In addition to this there is sometime provincial sales tax, such as in Quebec (a tax on a tax on a tax), and in larger urban centers there is a transit tax.

Taxes collected by the federal government (totaling $10,000,000,000 a year) do not get reserved for any specific program. However, provincial taxes usually go to fund road repair and construction.

United States of America

The first U.S. state tax on fuel was introduced in February 1919 in Oregon. It was a 1 cent per U.S. gallon (0.3¢/L) tax. In the following decade, all 48 U.S. states and the District of Columbia introduced a gasoline tax, and by 1939 an average tax of 3.8¢/gal (1¢/L) of fuel was levied by the individual states.

While state fuel taxes had been around for more than a decade, the first federal gasoline tax in the United States was created on June 6, 1932 with the enactment of the Revenue Act of 1932 with a tax of 1 cent/gal (0.3¢/L). The U.S. federal gasoline tax as of 2005 was 18.4¢/gal (4.86¢/L), and the gasoline taxes in the various states range from 10 cents to 33 cents, with an average about 22 cents per U.S. gallon (5.8¢/L). Unlike most goods in the U.S., the price displayed includes all taxes, rather than being calculated at the point of purchase.


All text of this article available under the terms of the GNU Free Documentation License (see Copyrights for details).

  
Car Insurance Services   Show All articles
Search by Zip
  Enter Zip  search
Contact Car Insurance Services near you.
Firstname *
Lastname *
Email *
Phone *
Alt. Phone
Zip *
Brief reason to contact *
Los Angeles Car Insurance ServiceMIAMI-DADE Car Insurance ServiceCook Car Insurance Service
SAINT LOUIS Car Insurance ServiceHarris Car Insurance ServiceMaricopa Car Insurance Service
Orange Car Insurance ServiceSan Diego Car Insurance ServicePRINCE GEORGES Car Insurance Service
Kings Car Insurance ServiceDade Car Insurance ServiceQueens Car Insurance Service
Dallas Car Insurance ServiceWayne Car Insurance ServiceKing Car Insurance Service
San Bernardino Car Insurance ServiceSanta Clara Car Insurance ServiceDEKALB Car Insurance Service
Broward Car Insurance ServiceDU PAGE Car Insurance ServiceRiverside Car Insurance Service
New York Car Insurance ServicePhiladelphia Car Insurance ServiceMiddlesex Car Insurance Service
Tarrant Car Insurance ServiceAlameda Car Insurance ServiceSuffolk Car Insurance Service
Cuyahoga Car Insurance ServiceBexar Car Insurance ServiceClark Car Insurance Service
 
More information...
Auto Insurance For Less - 4 Things That Will Help
You can get high quality auto insurance for a lot less if you are shown a few things. Yes, affordable rates are not just for a few insiders who know certain tricks....
Insurance for Performance Cars
Driving a high performance car comes at a price. Insurance premiums for performance vehicles are generally a lot higher compared to smaller engine cars....
How Your Car Insurance Quote Is Calculated
Insurance companies place vehicles in different categories depending on their value and performance....
Where To Go For Car Insurance
The internet is slowly taking over our lives. It's capable of satisfying all of our consumer desires; with a simple click of the mouse you can book yourself a holiday...
Online Car Insurance
There are many resources for consumers to consider when shopping for automobile coverage and among the most popular is online car insurance...
Auto Insurance Comparisons - Find The Best Deal
You finally have it, the car of your dreams. The beautiful paint job, the spotlessly clean interior, perfectly tinted windows, and that new car smell are all yours as the dealer hands you the keys...
Buying New Car Insurance
One of the most important aspects of buying a modern vehicle is the process of buying new car insurance....
How to Compare Car Insurance Companies
Obtaining excellent auto coverage that is affordable requires the ability to compare car insurance rates while assessing the quality of the provider in the process. ...
Car Insurance Rates
Car insurance rates vary from company to company. They also vary according to the benefits that are included in your policy....
Lower Car Insurance Rates
You can't imagine how much cash you could be losing in your car insurance unless you already have this information. Yes, you too can get lower car insurance rates....

Contact Us | Site Map | RSS Feeds | Articles | Jobs | All Members | Popular Searches | Popular Questions