(USA TODAY) -- Oklahoma raised its gas tax Sunday for the first time in 31 years to help fund pay raises for teachers.
The Sooner State was one of seven to raise their gas taxes Sunday, which mostly fund construction projects such as roads and bridges: South Carolina, Indiana, Maryland, Tennessee, Vermont and Iowa. Nebraska lowered its gas tax.
Oklahoma’s gas tax rose 3 cents per gallon and diesel tax rose 6 cents per gallon, which will leave both rates at 19 cents per gallon – one of the lowest rates in the country. This was the first hike since 1987 left Alaska with the longest hiatus since raising its gas tax more than 48 years ago.
Massive teacher protests this spring in Oklahoma, West Virginia, Kentucky and other states prompted the Oklahoma Legislature to raise taxes on cigarettes, fuel and oil and gas production to pay for raises averaging $6,100 per year and to boost funding for schools, support personnel and state workers.
“The last time the Sooner State raised its gas tax rate, the Berlin Wall was still standing and Congress was debating whether to ban smoking on flights shorter than two hours,” said Carl Davis, research director at the Institute on Taxation and Economic Policy.
The changes come as a record number of people are projected to drive for the July Fourth holiday. AAA projected that 46.9 million Americans would travel at least 50 miles for the holiday, which this year the group counts as Tuesday through Sunday.
“This Independence Day will be one for the record books as more Americans take to the nation’s roads, skies, rails and waterways than ever before,” said Bill Sutherland, senior vice president for AAA Travel and Publishing.
Gas prices had dropped in the last month but remain noticeably higher than a year ago, according to AAA travel club. The average price per gallon was $2.85 Sunday, down from nearly $2.96 a month ago, but still well above nearly $2.24 a year ago, according to AAA.
President Trump spoke Friday with King Salman bin Abdulaziz Al Saud of Saudi Arabia and said the two agreed on the need for a "healthy and stable global energy market for the benefit of all nations," despite turmoil in oil-producing Venezuela, according to the White House. Salman agreed to maintain a 2 million barrel per day spare capacity, "which it will prudently use if and when necessary to ensure market balance and stability, and in coordination with its producer partners, to respond to any eventuality."
The gas tax changes, in descending amounts, include:
South Carolina’s gas and diesel rates each rose 2 cents per gallon. The rise is the second installment of a six-part hike that will eventually total 12 cents per gallon.
Indiana’s gas tax rose 1.8 cents per gallon and diesel by 1 cent. Both are regulated annually to keep pace with inflation and the rate of personal-income growth, as well as overall gas prices.
Maryland gas and diesel rates each rose 1.5 cents per gallon, based on a formula approved in 2013 tracking inflation and the price of motor fuel.
Tennessee’s gas rate rose 1 cent per gallon and diesel went up 3 cents as part of a phased increase from 2017 totaling 6 cents for gas and 10 cents for diesel.
Vermont’s gas tax rose by 0.42 cents per gallon while the diesel rate remained unchanged. The hike was linked to the price of gas.
Iowa’s tax rate rose 0.2 cents for fuels not blended with ethanol. Most fuel in the farm state remained unchanged because ethanol-blended fuel is common.
Nebraska gas and diesel tax rates dropped 0.4 cents per gallon under a formula based on fuel prices and infrastructure spending.