7 States Have Gas Prices Below $3

The seven states are Missouri ($2.88 per gallon), South Carolina ($2.96), Oklahoma ($2.97), Tennessee ($2.98), Mississippi ($2.99) Minnesota ($2.99) and Kansas ($2.99), according to GasBuddy.

In three other states — Virginia, Alabama and Arkansas — the price is $3.

Oklahoma, South Carolina and Mississippi are among the 10 states with the lowest gas taxes, according to the Tax Foundation.

While falling gas taxes likely help consumer spending, particularly in the last quarter of the year — critical to the retail industry and the economy in general — the country’s infrastructure continues to crumble due to lack of repairs to bridges, highways and airports. Legislators have to look at low gas prices as an opportunity to raise gas taxes as a means to fund repairs.

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Among the states where gas taxes may rise soon is New Jersey, based on including sales tax in the purchase of gasoline. New Jersey’s gas tax already rates 48th among all states at $0.149 per gallon. According to NJ.com:

Extending the state sales tax to gasoline purchases could be among a combination of revenue sources likely to be used to fix the state’s potholed roads, rusted bridges, and overworked rail system, lawmakers said today (Oct 14).

The idea of charging New Jersey’s 7 percent sales tax on retail purchases of gasoline was raised during a hearing of the Assembly Transportation, Public Works and Independent Authorities Committee, the second in a series of field hearings looking into ways of replenishing the state Transportation Trust Fund, the main account used to pay for transportation projects and maintenance.

A similar move is being considered in South Carolina, which has the 47th highest gas tax at a mere $0.168. According to the Charlotte Observer:

A bipartisan group of S.C. lawmakers told business leaders Monday (Sept 23) they are ready to raise the state’s gas tax — one of the lowest in the nation — to repair roads and bridges. But, they added, they need the support of Republican Gov. Nikki Haley.

Haley, who is seeking re-election, has said she would veto increasing South Carolina’s 16-cent-a gallon gas tax, which has not been increased in 27 years.

In theory, consumer spending in states with very low gas taxes should be affected less by a tax hike. Of course, that is just a theory.

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