The new year brings increased taxes, as state officials struggle to fund road & bridge repairs.
Beginning today, motorists will pay more in gas taxes. The state fuel tax increased from 31-cents per gallon to 52-cents per gallon as of January 1st. The increase will be offset somewhat by the elimination of the six-percent sales tax on fuel.
The change, which was included in the state’s 2025-26 budget, is expected to generate over $1-billion in funding for road repair & maintenance.
Meanwhile, a 24-percent wholesale tax on marijuana products is slated to bring in $420-million for state road funding.
Local governments are expected to benefit from the increased taxes, in the form of local road funding
However, it remains to be seen how much the marijuana wholesale tax will impact sales, which could impact tax revenue for communities that have allowed marijuana businesses to operate within their borders.