Fuel Taxes

How is gasoline taxed in Wyoming?
As of July 1, 2013, Wyoming's total fuel tax is $.24/gallon. This includes a $0.23/gallon motor fuel license tax on gasoline and undyed diesel/kerosene/biodiesel, and no tax on dyed diesel/kerosene/biodiesel, and there is an additional license tax of $0.01/gallon on all fuels that goes to the Leaking Underground Storage Tank account, which is used to clean up leaking underground storage tanks. Finally, there is a $0.184/gallon federal tax on gasoline and a $0.244/gallon federal tax on diesel.

When was the fuel tax implemented?
In 1923, the original tax on gasoline was $.01/gallon. It was raised in 1925 to $0.025/gallon, and reached $0.03/gallon in 1927. It continued to grow until it reached the highest level at $0.14/gallon in 1998, where $0.02/gallon was diverted to the School Foundation Program (to help until it reach $20 million). Funds were again diverted to the School Foundation Account from July 1, 2000 to June 30, 2002. The School Foundation Program provides a guaranteed minimum level of funding to all Wyoming school districts based on several conditions from the previous school year. It is also funded by recapture from richer school districts. Currently no funds are diverted, yet the tax increased on July 1, 2013 to $0.2/gallon plus $0.01/gallon for the LUST fund for a total of $.24/gallon.

How does Wyoming compare to neighboring States and the Nation?
Wyoming has the second lowest tax on gasoline in the nation. A comparison of state fuel tax rates is provided below.

Data from: http://www.api.org/Oil-and-Natural-Gas-Overview/Industry-conomics/~/media/Files/Statistics/gasoline-diesel-summary.ashx

Where do our Federal gasoline taxes go?
The federal tax goes directly to the Federal Highway Trust Fund, which was created in 1956 and provides funding to the states for highway and transit projects. Funding, however, is not based on how much tax is collected from a given state, but from a state's "need," which is calculated by several measures, including miles of road and number of licensed drivers. This means that some states are "winners" who receive more than they are taxed, and some are "losers" who receive less.

The federal tax revenue goes into three different federal accounts, $0.001 for each gallon of gasoline or diesel sold goes to the Leaking Underground Storage Tank Fund for the cleanup of leaking underground storage tanks. All other federal gas taxes go to the Highway Trust Fund which divides the revenue into a highway account that gets $0.1544 for each gallon of gasoline and $0.2144 for each gallon of diesel. The mass transit account gets $0.0286 for each gallon of gasoline or diesel sold.

Is Wyoming a “winner” or “loser” when it comes to Federal taxes?
Wyoming is a winner. As of 2012 for every $1/gallon of federal fuel tax revenue that is collected in Wyoming, $1.62 is given to the state to fund its roads. There is also a minimum guarantee that all states must receive at least 90.5% of its contributions to the Highway Account of the Highway Trust Fund back in appointments.

Where do our state gasoline taxes go?

Source, LSO Budget Fiscal 2013 Databook – Note – the tax increased to $.23 plus the $.01 for LUST on July 1, 2013.

How much revenue does the tax bring in?
In the State Fiscal Year 2012, the tax on gasoline raised $45,876,353 for Wyoming. The tax on diesel fuel brought in $54,427,495. Wyoming had the 49th highest fuel tax revenue as of January 4, 2010.

What rebates and exemptions are available?
TThere are two gasoline tax relief programs available in the state of Wyoming; the Agricultural Tax Refund and the Off Road Refund.

The Agricultural Tax Refund was initially an exemption program but as of July 1, 2011, House Bill 153 changed it to be a refund program. Defined by W.S. 39-17-101(a), the Agricultural Fuel Tax Refund covers gasoline used for agricultural purposes as purchased in bulk (more than 35 gallons) for agriculture, excluding gas delivered to attached or auxiliary tanks of a motor vehicle, purchased from a Wyoming distributor or importer up to 100% of the $0.13 motor fuel license taxes imposed by the State. Applicants now receive forms and apply for the refund directly with the WYDOT Fuel Tax Administration Program. The administration can be contacted at 307-777-4826.

The Off Road Refund covers undyed diesel fuel purchased and used in Wyoming not on highways. It is subject to a refund of the $0.13 motor fuel license tax, if the refund form is submitted within a year of purchase with a receipt or invoice for the fuel and can be submitted anytime after the last day of the month if the user is entitled to a refund of $250 or more.

Along with these programs, the University of Wyoming, community colleges and schools can request a refund of the motor fuel license taxes at the end of each month if the fuel is purchased and used in Wyoming and the request is filed within one year.

Forms for all refunds are available on the WYDOT website at
http://www.dot.state.wy.us/wydot/business_with_wydot/fuel_tax/off_road_refund

How are compressed natural gas and other special fuels taxed?
Compressed natural gas and other special fuels are subject to the same state fuel tax rates paid for gasoline. According to W.S. 39-17-101 (a) gasoline is defined as any "substance produced from petroleum, natural gas, oil shale or coal... which can be used for operating or propelling motor vehicles." The national rates are shown in the chart below.

User Fee Structure for National Fuel Taxes
Tax Type Tax Rate
Gasoline and gasohol 18.4 cents per gallon
Diesel 24.4 cents per gallon
Special Fuels:  
  General rate 18.4 cents per gallon
  Liquefied petroleum gas 18.3 cents per gallon
  Liquefied natural gas 24.3 cents per gallon
  M85 (from natural gas) 9.25 cents per gallon
  Compressed natural gas 18.3 cents per 126.67 cubic feet

Source: http://www.fhwa.dot.gov/reports/financingfederalaid/fund.htm

 

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