What Is a State Gas Tax?
An indirect tax is a tax charged on the sale of specific manufacturing goods by a state or federal government. The state gas tax is the indirect tax that is charged on gas throughout the United States. This tax rate varies per state. The tax is collected by the seller of the product, which is the local gas station, and paid to the local government within a state. In the United States each state has the authority to assess taxes on the citizens of that state. Within each state there are several indirect taxes, primarily on tobacco, alcohol, and gas. These taxes are additional taxes that are imposed with federal taxes on these products. The federal gas tax was first introduced during the presidency of Herbert Hoover in 1932. This tax was originally designed to assist in balancing the federal budget and later used to finance the federal interstate road system. The state gas tax was first introduced by the state of Oregon in 1919, with all other states charging some type of fuel tax by 193
