Starting January 1, Nebraska drivers will see a slight increase in the state motor fuels tax, which will rise to 30.4 cents per gallon, up from the current rate of 29.6 cents per gallon. The Nebraska Department of Revenue announced the adjustment on Monday, explaining that the increase is driven by the variable tax rate. This rate is designed to generate the funds necessary for highway and bridge construction and maintenance projects.
The state gas tax comprises three components: the variable rate, the wholesale tax rate, and a fixed tax rate. While the variable rate is increasing, the wholesale tax rate will see a slight reduction, dropping from 13.3 cents to 13.2 cents per gallon.
Funds for the State Highway Trust Fund, which supports Nebraska’s transportation infrastructure, come from gas taxes paid at the pump, sales taxes on motor vehicles, and a portion of motor vehicle registration fees.
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