Oklahoma Gov. Mary Fallin Proposes Gas, Diesel Tax Increase
Oklahoma’s tax on gas and diesel would increase under a budget proposal Gov. Mary Fallin (R) presented to legislators this week.
Her plan would increase gasoline and diesel excise taxes by 7 cents per gallon and 10 cents per gallon, respectively. The excise tax on fuel would be dedicated to the state Department of Transportation.
The state’s fuel tax is 17 cents per gallon for gas and 14 cents for diesel. The proposal, if adopted, would align Oklahoma with other states, such as New Jersey, that recently raised taxes on fuel to pay for infrastructure projects.
“For decades, we’ve talked about how gasoline and diesel taxes should go to roads and bridges," Fallin said during the State of the State address Feb. 6. "My tax reform plan does that. My plan will ensure taxes associated with roads and bridges are the funding source for maintenance of roads and bridges."
Also under the governor’s plan, owners of high-speed electric vehicles would pay an annual $100 fee, and $50 for hybrid electric vehicles.
Nearly a quarter of Oklahoma’s bridges are deemed structurally deficient, meaning they need to be replaced or rehabilitated, while 6.7% no longer meet current design standards, the American Society of Engineers determined. Seventy percent of roads are in poor condition, which costs drivers about $425 in vehicle repairs.
