A drop in gas tax revenue could lead to you paying more in taxes.
Worried about funding for South Dakota roads, some state lawmakers are proposing an increase in the amount of tax you pay to the state, for every gallon of gas you pump. But just an increase of a dime per gallon would put South Dakota near the top of the ranks, when it comes to what states charge for a gas tax.
No matter where you fill up your gas tank, 18 cents per gallon goes to the federal government. But state taxes vary. In South Dakota, another 22 cents goes to the state. Under the plan a legislative committee passed Wednesday, the state tax would jump to 27 cents per gallon next year.
That would mean South Dakotans would pay more per gallon in state sales tax, than any other bordering state, with the exceptions of Minnesota and Montana. The current state tax rate in Minnesota is 27.1 cents per gallon, and Montana drivers pay 27 cents per gallon.
And while the new tax would be just slightly higher than Nebraska's, it would nearly double what drivers pay in Wyoming.
The plan that's moving forward in Pierre could also pave the way for a second five cent increase in 2012.
And, unless other states see increases too, South Dakota could become one of the top gas tax states in the country.
Currently, Washington state drivers pay 37.5 cents in state gas taxes.
Rhode Island is number two at 32 cents per gallon, the same amount South Dakota drivers could be paying in three years.
The current legislative plan also calls for an increase in the state excise tax and would double vehicle registration fees by 2012.
Other state's tack on extra charges at the pump like inspection and environmental fees.
