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13 Feb 2017


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Pennsylvania Gas Tax Hike

Starting this year, businesses in Pennsylvania that rely heavily on transportation will have an added cost due to an increase in the price of gas.  Pennsylvania is implementing a 8 cents per gallon wholesale tax on gas sold in the state.  This will bring the combined tax on gas to 58.3 cents per gallon once it is passed through to the consumer.

In order to improve infrastructure and create jobs in the state a new law (Act 89) was passed to raise more money for the transportation fund.

This is the third increase under Act 89.  There was a 9 cents increase in 2013 and a 10 cents increase in 2015.  There was no increase in 2016.  The 2017 increase is 8 cents.  This brings the total increase for the last four years to 27 cents.

Once the federal tax of 18.4 cents is added to the Pennsylvania 58.3 cents it equals to the highest gas tax in the nation of 76.7 cents

No doubt this wholesale tax increase will be passed to the consumer who will see it at the pump.  Those businesses that provide transportation of goods and people will experience the greatest impact.  But all businesses will be impacted on some way by this increased cost.

Pennsylvania Transportation Funding Plan (Act 89)

By Bill Williams














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