Nebraska motor fuels tax rate to increase in January

Posted By: Channel 8 Eyewitness News 

LINCOLN, Neb. (AP) – Nebraska motorists will soon pay more per gallon at the gas pump.

The Department of Revenue announced Friday that the state motor fuels tax will increase more than 1 cent per gallon, starting in January. The new rate will be 28.4 cents per gallon, up from 27 cents.

The fuels tax is composed of a wholesale, variable and fixed tax. The wholesale is set based on the wholesale price of fuel. That tax will drop from 9.5 cents to 8.7 cents per gallon.

The variable tax is based on legislative appropriations for transportation. That rate will increase to 4.9 cents per gallon from the current 4.2 cents.

The fixed tax will increase to 14.8 cents per gallon, compared to 13.3 cents, because of a bill approved by lawmakers in 2015.