Tuesday, January 18, 2011

Gas - 11 Gallon Fill-Up

(This post took about an hour two write up)

11.523 gallons of gasoline. The price at the pump was $3.12/gal. Even though most taxes are applied per-gallon, this number is still relevant as we shall see.

This is the first time I've ever calculated the amount of tax I paid for filling my tank, and I had to do quite a bit of digging to get these numbers; it's not something that is itemized on the receipt. And for good reason: the receipt would be too long. Google results for several sites list "blended" rates for NY gas tax, without breaking it out. I needed to research NY's per-gallon taxes on gas, plus find out if NY also applies sales tax (it does). Interestingly, the state and MTA tax when applied to gas is a per-gallon tax, instead of a percentage, as it is with sales tax.

Once I found all the rates, it was easy to multiply. The tricky one was county sales tax; some NY counties have also adopted per-gallon taxes, but Dutchess still uses a percentage. To calculate this, I followed the instructions in NY Pub 873, except I used the tables without the MTA tax, since I've calculated that separately.

If applied as a whole, the total tax rate would be a little over 20%.

Federal Gas Tax (18.4 cents/gal): $2.12
NY State Petroleum Business Tax (17 cents/gal): $1.96
NY State Sales Tax (8 cents/gal): $0.92
MTA Tax (0.75 cents/gal): $0.09
NY State Petroleum Testing Fee (0.05 cents/gal):
$0.01
Dutchess County Sales Tax (3.75%): $1.23

Sources: NY Pub 718-F (local tax), NY Pub 908 (fuel tax rates), NY Pub 873 (local rate tables)

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