Biden wants to suspend the federal gas tax. What gas taxes do Missouri and Kansas have?
In an effort to curb the costs of gas, President Biden has proposed suspending federal gas and diesel taxes for the next three months. The temporary tax cut, which is also referred to as a “gas tax holiday,” could save consumers up to 3.6% of the price of gas.
The average price of gas nationwide is $4.96, as of June 22. In Missouri and Kansas, the average price is $4.65 and $4.64, respectively, according to the American Automobile Association (AAA).
States have separate gas taxes
The fuel tax in Missouri and Kansas is 19.5 cents and 24 cents, some of the lowest fuel taxes in the county. Missouri has the seventh lowest gas tax in the county, while Kansas is tied for 13th lowest tax.
The diesel tax is also fairly low in both states, coming out to 19.5 cents in Missouri and 26 cents in Kansas, according to the Tax Policy Center, which is a joint initiative between the Urban Institute and the Brookings Institution.
In comparison, Pennsylvania has the highest state tax on fuel at 57.6 cents per gallon. While Alaska has the lowest gas tax rate at 8.95 per gallon.
Across the country, the average state tax on gas is 26.2 cents per gallon of gasoline and 26.7 cents a gallon on diesel, USA Today reported.
Here’s where you can see a full list of gas taxes by state.
What would the ‘gas tax holiday’ do?
The White House’s gas tax holiday proposal won’t impact those statewide taxes, instead it will slash the 18.4 cents-per-gallon federal gas tax and a 24.4 centers-per-gallon federal diesel tax, AP reported.
Federal and state taxes combined make up only 15% of the price that consumers see at the pump, according to AAA Missouri Spokesperson Nick Chabarria.
Although gas holiday could offer some relief with the elimination of federal taxes, experts say it won’t bring the overall price of gas down by much.
“We know that other factors, including the price of crude oil could quickly offset any savings that would be brought on by forgoing the federal fuel tax. Just a couple of weeks ago, we were seeing price increases at the pump of 10,15, 20 cents overnight,” Chabarria said.
For a more in depth breakdown of the gas tax holiday might affect you, check out this guide.
