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State gas tax to drop a penny in Nebraska

State gas tax to drop a penny in Nebraska

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A new electric version of Ford's immensely popular F-150 pickup truck could be the catalyst that hastens America's transition from gasoline to battery-powered vehicles.

LINCOLN — Nebraska drivers will pay the state a penny less per gallon to fill their tanks during the second half of this year.

The Nebraska Department of Revenue announced Monday that the state motor fuels tax will drop to 27.7 cents per gallon on July 1, down from 28.7 cents per gallon currently.

The change was triggered by the wholesale price of fuel, one of three components of the state gas tax. The fuel tax can vary every six months to bring in the amount of money budgeted for highway and bridge construction and maintenance.

The new rate will be down 5.5 cents per gallon from a record high set one year ago, when driving miles dropped in the midst of the pandemic. The drop reflects a return to more normal driving patterns and, as a result, a more normal gas tax level.

The State Highway Trust Fund gets money from three sources: gas taxes paid at the pump, sales taxes paid on motor vehicles and a portion of each motor vehicle registration.

The state charges a separate petroleum release remedial action fee, which remains at 0.9 cents per gallon on motor vehicle fuels and 0.3 cents per gallon on diesel fuels. The fee is used to pay for cleanup of fuel leaks.


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Martha Stoddard keeps legislators honest from The World-Herald's Lincoln bureau, where she covers news from the State Capitol. Follow her on Twitter @StoddardOWH. Phone: 402-670-2402

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