The rate of revenue increase, however, has slowed in the last four months as gas prices have surged near the $4 mark.
BOSTON – Gasoline tax revenues are running higher in Massachusetts than at this time a year ago despite the sharp spike in prices at the pump.
The rate of revenue increase, however, has slowed in the last four months as gas prices have surged near the $4 mark, suggesting that some residents may be at least modifying their driving habits, state tax officials said.
Massachusetts took in $96.8 million from the 21 cents per gallon excise tax during the months of March and April. That was a $200,000 increase from the same two months a year ago, according to Robert Bliss, spokesman for the Department of Revenue.
Through the first 10 months of the fiscal year, which ends June 30, the state had collected $493 million in gasoline taxes, $6.4 million higher than at this time last year.
Because the tax is assessed as a fixed amount per gallon, and not as a percentage of the total sale, gas price fluctuations alone have no bearing on the amount of tax collected. But the state could see revenues from the tax drop if higher prices led to significant changes in gasoline consumption.
The fact that revenues have not dropped indicates that “despite the rise in prices, people are not buying less gasoline and in fact have bought somewhat more,” Bliss said.
During the first six months of the fiscal year that began July 1, gas tax revenues rose about $5 million compared to the previous year. During the January-April period the cumulative increase was slightly over $1 million, indicating that people may be trying to curtail driving a bit in response to the price surge.
According to weekly surveys conducted by the American Automobile Association of Southern New England, the average price for a gallon of self-serve regular unleaded gasoline stood at $3.94 per gallon in Massachusetts at the end of April. The average stood at $3.30 per gallon at the beginning of March and at $3.06 per gallon at the start of the start of the calendar year.
The average was $2.86 per gallon a year ago at this time.
Mary Maguire, a Massachusetts spokeswoman for AAA, said it was surprising that gas tax revenues had not declined in light of national surveys showing a drop in demand of 3 to 5 percent as people respond. “ I think people are shopping the low end of the price range for gasoline,” she said.
The Massachusetts Bay Transportation Authority reported that ridership on the public transit system rose 5 percent in March compared to the same month in the previous year, another signal that more commuters might be eschewing their private vehicles in favor of other modes of transportation. April ridership figures were not yet available.
The state’s improving economy and lower unemployment rate may be helping to offset any drop in revenue that might otherwise result from reduced gasoline consumption, Bliss said.
The vast majority of gas tax revenue is deposited into the Commonwealth Transportation Fund and used for transportation-related purposes, including the repayment of money borrowed for highway construction projects. A tiny portion of the tax also goes to a fund to protect fish and wildlife.
In addition to the 21 cents per gallon tax, Massachusetts since 2003 has also charged an additional 2.5 cents per gallon tax, ostensibly to support the cleanup of underground fuel storage tanks. Proceeds from that tax are deposited into the state’s General Fund, with much of it redirected to programs other than the underground tanks.
Maguire said AAA does not expect gas prices to significantly affect summer travel in Massachusetts, since many residents drive relatively short distances to reach vacation destinations such as Cape Cod.