View Single Post
Old 02-04-2006, 04:24 PM is offline
Join Date: Mar 2003
Location: Minneapolis, MN
Posts: 13,921
Originally Posted by Booker57
It has something to do with the way liquid fuel is taxed. A local gas station tried to sell at a different price, ending with 5/10th and was told by the tax people to stop.
Could we see a cite on that, please?

According to this website, the taxes in states vary widely, and end in everything from .1 to .9. They are all defined as so many /gallon, added into the retail price. So if the state gets it's money, why would they care what the last digit of the price is.

I think the local station was feeding you a line.

Even more detail (from 2002) is available at Total tax on gas ranged from 35.38 (NY) to 8 (AK).

Some legislators are talking about setting the price as a percentage of the gas sales price, rather than a fixed number of pennies. This would have the advantage of automatically changing the tax as the energy price fluctuated, but the disadvantage of being harder for the state to verify that the correct amount was paid.