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The Operation of the Petrol Tax in America.
Page 112
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THE States of the American Union are making motor users help to pay for the high cost of construction and upkeep of public highways by the payment of taxes on petrol used in motor vehicles. According to the Bureau of Public Roads of the United States Department of Agriculture, these taxes aggregated $84,939,373 during the first six months of 1926. All States, except Illinois, Massachusetts, New Jersey and New York, impose a petrol tax, the rate ranging from 1 cent to 5 cents a gallon, with an average of 2.39 cents. A total of 3,560,987,586 gallons of petrol was taxed. Since 19,697,832 motor
D22 vehicles were registered in the period of six months, the petrol consumption per vehicle averaged 225 gallons, or at the rate of 450 gallons a year.
Petrol taxes were first imposed in 1919, when four States adopted the tax and derived a revenue of a little more than $1,000,000.
Of the revenues collected in the first six months of 1926, that made available for State highway departments amounted to $54,981,677, for State and county roads $19,338,876, for State and county road bonds $6,329,413 and for miscellaneous purposes $4,140,889.
The principal highways of the United States—or the inter-State roads, as they are called — are constructed with the aid of the Federal Government. The expense is divided between the Federal and State Governments, and supervision of the construction is entrusted to the Federal Bureau of Public Roads. Since' 1917, when the Federal Government began aiding the construction of public roads, a total of 3391,200,000. has been appropriated, and the State Governments have spent an equal amount on inter-State road projects in addition to local State road projects. The Federal Government's appropriation for 1926, was $75,000,000.