It means that overall state gasoline taxes will rise from 26 cents per gallon to 26.4 cents per gallon, according to the report.
As of October, Nebraska's gasoline tax ranked No. 20 among all states, said the newspaper, citing the American Petroleum Institute (API). [image-nocss] That is about 3 cents under the national average, according to API, and about 22 cents lower than the highest state, California.
The rise in the Nebraska tax rate reflects an overall drop in fuel consumption over the past year, Steve Maraman, the fiscal controller for the Roads Department, told the paper. The increased tax rate is expected to raise about $2 million in additional revenue.
By law, the state's variable gasoline tax is adjusted every six months to reflect fuel consumption and the need to meet the state's budget for road-building projects. When consumption goes down, the tax has to rise, the report said.
Such increases always bring gripes, Maraman said. He pointed out that a 1-cent rise in the gasoline tax rate translates into about $6 in additional taxes a year for an average motorist, one who drives 12,000 miles per year in a car that gets 20 miles per gallon (mpg). That translates into $2.40 more a year for the 0.4-cent increase.
In 2008, fuel consumption in Nebraska has been down compared with the previous year in every month except February, according to state figures cited by the paper. While the consumption calculations were figured on usage through August, Maraman said consumers have continued to reduce their travel despite the steep decline in gasoline prices in recent months.
Lower gasoline prices have also cut down on something else: griping at the cashier's counter, said Lucinda Beahr, who was behind the cash register Monday at U-Stop. "It's so nice that people are happy now," she told the World-Herald. "We have to hear the complaints."
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.