How much tax money do I pay at the pump, and what happens to it?
As of 2007, Hoosiers pay about 36 cents per gallon of gas in state and federal taxes, according to government sources. Thirty-six cents is below the national average of 42 cents per gallon, and cheaper than most surrounding states.
The states with the highest and lowest gas taxes, respectively, are Hawaii and Alaska: Hawaiians pay 53 cents per gallon, and Alaskans pay 26 cents.
Regionally, Indiana is pretty cheap: Ohioans pay 40 cents per gallon; Michiganites pay 44 cents; and Illinois residents pay a whopping 48 cents.
Some of what Hoosiers pay in gas tax goes to gas pump inspections, a trifle .008 cents per gallon, and there’s also a 6 percent sales tax. According to the state, almost all of that tax goes to building roads and highways, and repairing roads.
The rest of the cost of a gallon of gas is made-up mostly of the cost of crude oil, and shipping costs.
In an extreme emergency crisis, the governor of Indiana is allowed by state law to suspend the gas tax for up to 120 days. In Oct. 2000, then-governor Frank O’Bannon suspended some of the gas tax, as premium gas prices were edging toward a whopping $2 per gallon.
x20 Burning Questions
June 30, 2007
HOW MUCH TAXES DO WE PAY?
- x20 Burning Questions
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Alexandria football: Tigers hope change will do them good
Change has always been and will be a constant in the universe.
And for the Alexandria football team, they’re hoping the change of a new head coach will lead to a change against an unfortunate recent trend. - 7:38 p.m.: 20 BURNING QUESTIONS: Madison County property taxpayers still waiting Across the state, property owners are protesting 2006 tax bills that reflect increases as high as 50 percent over 2005 rates.
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EDITORIAL: We must fuel our destiny
It seems sound advice to focus on what we can control and to let what we can’t control take care of itself.
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SHOULD I USE PUBLIC TRANSIT?
Is bus service available to me?
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WHAT USED CARS GET GOOD MPG?
7. If I want good mpg in a used car, which models should I consider?
- WHAT NEW CARS GET GOOD MPG? Here is a listing of the best and worst 2007 vehicles (less in a few cases) for mpg in every class of vehicle as rated by the Environmental Protection Agency.
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HOW MUCH TAXES DO WE PAY?
How much tax money do I pay at the pump, and what happens to it?
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WHY AM I PAYING SO MUCH?
The short answer?
It’s summer, people are driving more, and gasoline demand is at its peak.
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ARE THERE ALTERNATIVES?
How much gasoline could riding a motorcycle save?
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DO OTHERS FEEL THE WAY I DO?
Do other people feel the same way I do about gas prices?
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