Gasoline Tax Law and Legal Definition

A gasoline tax is a sales tax imposed on the sale of gasoline. In the United States, the funds are dedicated or hypothecated to be used for transportation or roads purposes, so that the gas tax is considered by many to be a user fee. The federal government has levied a tax on gasoline since 1932. For many years, the proceeds of the tax went into the general fund of the Treasury. Although at the time of enactment there was no earmarking of any kind, federal highway aid was continuously granted to the states. In 1956, the federal gasoline tax was increased and the proceeds paid into a trust fund set up to finance the federal government share the cost of the interstate highway system.

State gasoline tax laws may also apply, which vary by state. Local laws should be consulted for the specific requirements in your area. Gasoline tax may also be referred to as a gas tax, petrol tax, fuel tax or fuel duty.