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Travelers hitting the road over the Fourth of July holiday weekend may have to spend more at the pump than they thought.
Starting July 1, seven states will increase the tax collected on each gallon of gasoline. The two are imposing a new tax on electric vehicle charging station users.
Gas prices have been cut by 20 percent since May 2022. Industry experts say the tax changes are smaller than prices like crude oil prices. Still, for Americans burdened by inflation, any tax increase could seem like an unwanted bump in the road.
Here’s what to expect at the pump and plug.
States changing fuel tax rates
Seven states are increasing taxes on petrol and diesel fuel. Two states — Montana and Utah — are adding surcharges to electric vehicle charging stations. Meanwhile, one region is reducing taxes on fuel.
So is the price of electricity
Drivers of electric vehicles will face new tax surcharges. Utah has imposed a new 12.5% tax on electricity sold at public charging stations, and Montana now has a similar tax on public stations, amounting to $0.03 per kilowatt hour.
Montana EV drivers can put off this new tax for up to two years. For now, taxes won’t be collected at “legacy” charging stations — those before July 1, 2023 — because the law gives them until July 2025 to install the required meters.
Related: 5 apps to find the cheapest gas near you