These State Tax Changes Kick In July 1

Sports Betting Tax

Effective July 1, Tennessee ”will impose a new privilege tax on sportsbook operators of 1.85% of the total amount of gross wagers. This change is the result of SB 0475, which was enacted in May. Sports betting became legal in 2019 when the state passed the Sports Gaming Act.”

Gas Tax

Nine states will see gas tax changes come July 1.

In California, the Oil Spill Prevention and Administration (OSPA) fee on owners of crude oil, petroleum products, and renewable fuels, will increase from $0.085 to $0.091 per barrel.

Colorado

Colorado is phasing in a “road usage fee” on gasoline and diesel fuel. The fee on gasoline is set to increase from $0.02 to $0.03 per gallon, and the fee on diesel will increase from $0.04 to $0.06 per gallon.

Illinois

An inflation adjustment to Illinois’ motor fuel tax will take effect July 1, through Dec. 31. Gasoline will be taxed at a rate of $0.454 per gallon, up from $0.423 per gallon, while diesel will be taxed at a rate of $0.529 per gallon, up from $0.498 per gallon.

Indiana

Indiana has published inflation-adjusted fuel tax rates for the fiscal year that begins July 1. The gas tax will increase from $0.33 to $0.34 per gallon, and the special fuel license tax will increase from $0.55 to $0.57 per gallon.

Kentucky

Kentucky’s tax on gasoline will increase from $0.266 to $0.287 per gallon, petroleum from $0.266 to $0.287 per gallon, and special fuels from $0.236 to $0.257 per gallon, in accordance with changes in the average wholesale price (AWP) of gas.

Maryland

Maryland’s fuel taxes will increase. The state’s gas tax will rise to $0.47 per gallon, and the diesel tax will climb to $0.4775 per gallon.

Missouri

On July 1, Missouri’s gas tax will increase from $0.22 to $0.245 per gallon, following a schedule of increases implemented by legislation enacted in 2021 that set out to raise the tax by $0.125 per gallon by July 1, 2025.

Montana

Effective July 1, a tax of $0.03 per kilowatt hour or its equivalent will be levied on electric current from public electric vehicle charging stations. Public charging stations already in operation have until July 1, 2025, to install meters to collect the tax.

Virginia

Virginia’s fuel taxes will increase, including the gas tax, which will increase from $0.28 to $0.298 per gallon, and the diesel tax, which will increase from $0.289 to $0.308 per gallon, as well as taxes on blended fuels.