Daniel Acker/Bloomberg News
The gasoline tax is so low and has not been raised for so long in 10 states, that the levy’s purchasing power has fallen to historic lows, a new study said.
States where this has occurred are Alabama, Alaska, Delaware, Idaho, Iowa, Nebraska, New Jersey, South Carolina, Utah, and Virginia, said the report released earlier this month.
The study was conducted by the Institute on Taxation and Economic Policy, a Washington think tank.
To measure the buying power of each state’s gasoline tax, researchers used inflation factors and compared the
states’ current gasoline tax rates with the average gas tax rate levied in each state since its gasoline tax was first enacted.
“For example, while the 2-cent gas tax that Delaware levied in 1924 may sound extremely low to today’s drivers, in the context of the 1924 economy, it was actually higher than the [23-cent] tax rate Delaware levies today,” the report said.