(Neb)-Gas Tax Going Up Tuesday
LINCOLN, Neb. (AP) - Nebraska motorists will pay a little more at the pumps Tuesday when the state motor fuels tax goes up 1.6-cents to a total of 29.6-cents per gallon.
The fuels tax is composed of 3 parts - wholesale, variable and fixed.
The wholesale portion is based on the wholesale price of fuel, the variable tax is based on the highway construction budget approved by the legislature, and the fixed tax rate is set by the legislature.
The fixed rate will increase 1.5-cents on January 1st to 16.3 cents per gallon as part of a highway funding plan passed a couple years ago.
The wholesale and variable taxes are reviewed twice a year and adjusted up or down as needed on Jan 1st and July 1st. The wholesale tax is reviewed to reflect current prices while the variable tax changes to reflect whether it's bringing in the amount needed to meet the plan set by the legislature.
The wholesale tax will go up a full penny from to 10.7-cents per gallon while the variable rate will drop 9-10ths of a penny to 2.6-cents per gallon because the current rate is bringing in more than is needed.
Taken together, the wholesale and fixed tax increases total 2-1/2-cents with the drop in the variable rate resulting in the overall increase of 1.6-cents and the final total of 29.6-cents per gallon
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