Do you catch yourself turning your head to check gas prices every time you get out? If you do, you’re not alone. The cost of gas seems to be at the forefront of everyone’s mind. Perhaps because fuel is integrated so closely into our way of life. We need fuel to go to work, shuttle kids to recreational activities, and even to go to the grocery store. Now that summer is in full swing, families are preparing for road trips, while some are postponing them in hopes of falling gas prices. If you use fuel as a primary resource at work, you have felt the sting of rising fuel prices even more than the average driver.
Some States Are Taking Action Against Rising Gas Prices
As the cost of fuel continues to soar across the country, the only assurance that President Biden has offered is that inflation will continue. Therefore, we should expect to embrace a higher cost of living. However, fuel prices seem to be changing by the day, creeping up higher and higher. So, this is a reminder that the financial crunch for fuel is here to stay.
Tax Changes Starting July 1st
Although most tax changes happen at the start of the calendar year, for some states, the fiscal year officially starts on July 1st. The only states that do not begin their fiscal year on July 1st are Alabama, Michigan, New York, and Texas. This means that this year, July 1st was the start of the new fiscal year, and with that, a grim new reality. Which is that some states officially raised fuel taxes, even more, making paying at the pump even harder.
Receive the Tax Credit You Earned
Aside from paying fuel sales taxes, there are also excise taxes imposed on fuel that you may not even be aware of. The good news is that the IRS allows for a tax credit for these excise taxes in particular situations, but some people aren’t even aware of this tax break. If there was ever a time to learn how to save some money related to excise fuel expenses, that time is now. If you don’t know what an excise tax is, now is the time to learn about that, too. Excise tax is a complicated concept to understand, and excise fuel tax recovery is an even more complex process to navigate.
TiP Excise Are the Top Fuel Tax Experts
Now, more than ever, TiP Excise wants to make sure that you are aware of some of the fuel tax advantages available to you. We are excise fuel tax experts, and we’re here to ensure you save every dollar you can on fuel expenses. We have the tools available to make this process as manageable as possible, and we want to share our expertise with you.
What is an Excise Fuel Tax?
An excise tax is a tax imposed on various goods, services, and activities, separate from a sales tax. Depending on the specific tax, excise taxes may be imposed on the manufacturer, retailer, or consumer. Fuel is one category that qualifies for payment of excise taxes. Diesel, gasoline, alternative fuels, and some combination fuels fall into this category, as well.
What is the Purpose of Excise Fuel Tax?
Most excise taxes are used to fund transportation projects. Repairing deteriorating highways, paving roads, and demolishing or repurposing obsolete or structurally deficient bridges are examples of how excise taxes are used.
When do Excise Fuel Taxes Qualify for a Tax Credit?
Depending on how fuels are used, the government offers some tax relief in certain circumstances. For example, gasoline and diesel are charged an excise tax. However, if you use that gasoline or diesel to operate machinery off-road, you may be eligible for a credit on the excise tax paid for that gasoline or diesel. Consider a forklift, which isn’t normally used on public roads, but they require gas or diesel to operate. In this circumstance, the excise taxes paid for the fuel to power this forklift may be eligible for a tax refund.
All of Your Solutions are at TiP Excise
This might have your gears spinning but knowing where to begin your tax recovery process may be a bit overwhelming. At TiP Excise, we specialize in fuel excise taxes, distinguishing where a tax credit or refund may apply, and helping file for and recover the money due to you, the taxpayer. We can help take the confusion and complication out of the equation.
States with Fuel Tax Hikes Beginning July 1st, 2022
Fuel excise taxes have been recoverable for some time now, but with some states raising the rate of excise tax imposed on fuel. However, it’s more vital than ever before to know just how much you are affected by these rising tax rates. Therefore, it is important to know what you can do to alleviate the financial hit you take when you purchase fuel.
Variations exist in fuel tax by state, so not all impacts are identical. Some states raised fuel taxes stating inflation as a cause, while others cited other automatic factors such as changes in the average wholesale price of fuel.
Listed below you will find the states that imposed higher tax rates for fuel starting on July 1st .
- South Carolina
TiP Excise is your Tax Relief Resource
Many people depend on fuel to source their livelihood and don’t have much of an option regarding limiting fuel purchases. You don’t have a choice but to pay the regulated fuel taxes. You do have a choice to attempt to recover any fuel tax credit owed to you, however. It’s not an easy process, but it is doable. You will need a specialized and experienced team to walk you through the world of excise fuel tax recovery.
Contact Our Team of Excise Tax Experts Today
With the help of experts like the team at TiP Excise, you can breathe a little easier knowing you’re not alone in the process. We only get paid if you get paid, so our business depends on your financial gain. With this motivation, you can be sure that you are receiving the most complete and reliable excise fuel tax recovery effort possible.
Let’s work together to get back the money that is due to you. You can’t avoid paying excise fuel taxes. However, we can help lessen the financial hit by taking advantage of all tax-saving incentives. Contact us today!