How will the CPI tax increase be computed?
The CPI tax increase will be computed by the Comptrollerís Office. The percentage of growth will be determined by averaging the CPI for the 12 months preceding April 30th to the average index for the prior 12 months. This rate is multiplied by the current motor fuel tax rate to determine the increase in the motor fuel tax.
This increase took effect July 1, 2013, and may increase each July 1st thereafter. However, the motor fuel tax increase cannot be greater than 8% of the motor fuel tax rate effective in the previous year. Also, if there is a decrease or no growth in the CPI, the motor fuel tax will remain the same.