One of the most essential commodities in today's society is fuel as it is needed for our daily lives. We use it for a wide range of things in our modern world and when we run short, life can quickly become inconvenient. The most common form of fuel though is the one used to meet our needs for transportation to and from our work, school, and our daily lives. Most of us, however, take the availability of this fuel for granted and never give it a second thought until the prices escalate to extreme rates. If you're one of those people then chances are that you've wondered what is behind the fluctuation of high fuel prices from time to time. Part of it is a result of the fuel taxes that are added to the total cost of getting it to your tank. This leads many to wonder how our fuel taxes by state are determined.
The Purpose of Fuel Taxes:
The money collected as fuel taxes is generally money the government sets aside to pay the maintenance and development of the transportation infrastructure in each state. Because this infrastructure varies from one state to the next, the cost of fuel will also vary from one state to the next. Some states supplement their fuel tax monies by charging additional tolls for travel on certain roads but for most states, these taxes are the favored method for funding many highway projects and maintenance.
The Differences Between States:
States will also vary from one to the next on how they determine the amount of taxes owed. Some will charge by the gallon while others will charge based on an average price range over a predetermined period of time. Then there are a few states that also factor in an environmental impact factor in order to set aside money for cleaning and reducing the negative impact on the environment as a result of burning the fuels needed to run our cars, trucks, boats, and other modes of transportation.
How Much Are You Paying?
To determine how much of your total fuel taxes by state you may be paying there are several different websites that you can go to for a simple breakdown. The American Petroleum Institute issues quarterly reports on all 50 states and compiles a detailed report on the amount of taxes and uses the information collected to calculate a nationwide average.
These charts break down weighted averages by state by calculating a number of different factors like population, percentages of types of fuel used (premium, midgrade, or regular fuel) and even the ways fuel may be being used. While motor fuel is probably the highest fuel cost in demand there are other types of fuel that may also be factored in the final fuel tax rates including home heating fuel or cooking fuel. There is a lot involved in calculating fuel taxes by state. Those who are concerned with where their tax dollars are going and how they have benefited the people in their state can easily check with the American Petroleum Institute to get the kind of answers they are looking for.