STATE Act

The Surface Transportation and Taxation Equity (STATE) Act, introduced as H.R. 1097 in the 109th Congress, would allow for a reduction in the federal excise tax on gasoline and special fuels. Under this bill, the federal gas tax would decrease by an amount equal to any increase in fuel taxes imposed by an individual state, though the federal rate would not drop below 2 cents per gallon.

For citizens, this change would effectively shift a portion of fuel tax collection from the federal government to the state level without necessarily increasing the total tax paid at the pump. The bill's primary impact would be to give states more direct control over transportation funding and tax revenue that is currently managed by the federal government.