States Hiking Consumer Taxes
Feel like you've been paying more at the cash register or gas pump? In several states, you can blame it on tax increases.
States aren't just looking for creative ways to raise extra revenue (see 10 Surprising Ways Your State May Tax You Next). They're making up for shortfalls with traditional hikes in gasoline, cigarette and sales taxes, too.
The District of Columbia and North Carolina have increased taxes in all three areas over the past year, according to CCH, a publisher of tax information. A total of five states have raised their tax on gas, five have hiked their sales tax and 11 have increased their tax on cigarettes. One state, Florida, lowered its gas tax.
You might have not have noticed that your state recently jacked up its consmer taxes. With our handy list below in mind, those of you who cross state lines during your regular travels might want to think more carefully about when to fill up or where to buy big-ticket items. For instance, with Kentucky’s gas tax rising 40 cents per gallon in the past year, residents of nearby southern Indiana who commute to Louisville each day might want to avoid filling up near work.
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Gas tax hikes
California: from 18 cents a gallon to 35.3 cents
Kentucky: from 21.1 cents to 60 cents
Minnesota: from 27.1 cents to 27.5 cents
Nebraska: from 26.4 cents to 64 cents
North Carolina: from 29.9 cents to 31.9 cents
District of Columbia: from 20 cents to 23.5 cents
Sales tax hikes
Arizona: from 5.6% to 6.6%
Kansas: from 5.3% to 6.3%
Massachusetts: from 5% to 6.25%
New Mexico: from 5% to 5.125%
North Carolina: from 4.5% to 5.75%
District of Columbia: from 5.75% to 6%
Cigarette tax hikes
Connecticut: from $2 a pack to $3
Delaware: from $1.15 to $1.60
Hawaii: from $2.60 to $3
New Mexico: from 91 cents to $1.66
New York: from $2.75 to $4.35
North Carolina: from 35 cents to 45 cents
Pennsylvania: from $1.35 to $1.60
South Carolina: from 7 cents to 57 cents
Utah: from 69.5 cents to $1.70
Washington: from $2.025 cents to $3.025
Wisconsin: from $1.77 to $2.52
District of Columbia: from $2 to $2.50
You can see tax rates in each state on CCH's national map of tax rates. Also check out Kiplinger's retiree tax map to see which states are more tax-friendly for retirees.
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Award-winning journalist, speaker, family finance expert, and author of Mom and Dad, We Need to Talk.
Cameron Huddleston wrote the daily "Kip Tips" column for Kiplinger.com. She joined Kiplinger in 2001 after graduating from American University with an MA in economic journalism.
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