Welcome back truckers and Commercial Motor Carrier owners to our blog. We’re highly esteemed to sustain your interest level since the day we have entered the world of taxes. Last week, we discussed about the differences between gas tax and mileage tax, today we will share a post regarding gasoline tax law and its functionality.
We all know that there are many commodities, which a consumer uses and they pay a portion of tax to generate revenue for federal and state governments and gas is one among the list. Gasoline tax is considered as used or sales tax, paved their way three whole decades after automobiles first arrived in the market and been around for most of the modern memory.
Yesteryear’s:
The first gasoline tax was imposed when the Revenue Act of 1932 was passed, according to the Federal Highway Administration. This tax included 1 cent per gallon for importing gas and oil tariffs and 1 cent per gallon for gasoline tax. However in 1950s, the congress decided to fund the interstate highway system with the revenue collected from gasoline and other excise taxes. The Federal Aid Highway Act of 1956 also initiated Highway Trust Fund for the same.
Requirement:
The very first gas tax was introduced in order to boost the economy during the Great Depression. However after a decade, the tax expanded to 1.5 cents to help and pay for civil defense before World War II. There was a time, when the taxes were earmarked to reduce the federal deficit.
The taxes collected now are dedicated for maintenance of federal roads and bridge. Individual states also levy gas taxes and use the money collected in maintaining the state and country roads to make the journey smooth.
These Federal Highway Administration uses gas tax revenue to maintain some public-private partnerships in order to build road for emergencies transportation and to carry on safety matters. One part of the gas tax is also contributed to the environmental protections that address noise, air and water quality and climate change.
Various Types:
Other than gasoline, there are taxes imposed on oil and fuel products. The Federal Government and Individual states charge taxes on diesel fuel, liquefied gas and natural gas. Some states, such as Tennessee, charge on special use or export taxes on petroleum products, whereas, Connecticut charges a gross earnings tax on fuel. The IRS also collects a “gas guzzler” tax from manufacturers on vehicles that do not meet certain mileage requirements as determined by the Environmental Protection Agency.
“There are no exceptions for death and taxes”. This phrase tells us that nothing can substitute death and your tax filing sessions. It is important to file your taxes on time and oblige the state and Federal Government with your taxes.
So now that you got to deal with your taxes on a serious note, you can always rely onTaxIFTA.com for preparing your IFTA form online and also to clear your queries to get your form in better shape. You can always call us @ 1-866-245-3918 or shoot an Email to support@taxexcise.com