Drivers in the Mountain State will pay less tax on a gallon of motor fuel in 2017, according to data released today by the West Virginia State Tax Department.
The total state tax imposed on a gallon of motor fuel will drop from 33.2 cents to 32.2 cents as of January 1, 2017, making this the third consecutive year for a decrease in West Virginia’s motor fuel tax following a peak rate of 35.7 cents per gallon in 2014.
From the peak rate of 35.7 cents per gallon in 2014, what these decreases in tax rate actually mean for a typical driver traveling 20,000 miles per year with a car consuming one gallon per every 25 miles traveled:
• In 2015, the rate fell to 34.6 cents per gallon with a calculated savings of $8.80 per year for someone driving 20,000 miles with fuel efficiency of 25 mpg at a cost to the State Road Fund of roughly $15 million.
• In 2016, the rate fell to 33.2 cents per gallon with a calculated cumulative savings of $20 per year for someone driving 20,000 miles with fuel efficiency of 25 mpg at a cumulative annual cost of roughly $35 million to the State Road Fund.
• In 2017, the rate will decrease to 32.2 cents per gallon with a calculated cumulative savings of $28 per year for someone driving 20,000 miles with fuel efficiency of 25 mpg at a cumulative annual cost of roughly $49 million to the State Road Fund.
The state’s tax rate will be less than 2 cents per gallon above the weighted national average as determined by the American Petroleum Institute.
