tax News Updates

Massachusetts became the latest state to increase its fuel taxes, with lawmakers approving a transportation-funding plan Wednesday that will add 3 cents to the state’s 21-cent-per-gallon diesel and gasoline taxes.

A federal appeals court has ruled that Alabama discriminates against railroads because it makes them pay a sales tax on diesel fuel that truckers and other freight haulers do not have to pay.

Fairness is a bedrock requirement for a just taxation system. And fairness is surely what state officials in Alabama had in mind some years ago when they imposed a 4% sales tax on diesel fuel purchases by railroads.

Oregon legislators passed a bill that would create a voluntary program to phase in road-usage charges in lieu of the state’s gasoline tax, the (Salem, Ore.) Statesman Journal reported.

Maryland Gov. Martin O’Malley (D) signed into law the state’s first gas tax increase in 20 years and announced $1.2 billion in transportation projects, the Associated Press reported.

The Minnesota Trucking Association criticized a legislative proposal to put a tax on warehousing services in the state, saying it would harm the state’s economy and kill jobs.

The Senate passed a bill Monday that would subject most online shopping to state sales taxes, the Associated Press reported.

Vermont Gov. Peter Shumlin (D) signed a transportation budget bill Monday that will boost the state’s current diesel fuel tax by 2 cents beginning July 1, and the gasoline tax by 5.9 cents a gallon, effective Wednesday.

The Vermont Senate’s efforts to minimize an increase in the state’s gasoline tax could raise the diesel tax there by as much as 4 cents over the next two years, the Rutland (Vt.) Herald reported.