Motor fuels tax fee to lower January 1

Lincoln, Neb. — The Nebraska motor fuels tax rate for January 1 through June 30, 2021 will be 28.7 cents per gallon, down from 33.2 cents per gallon. That’s a decrease of 4.5 cents.

The components of the future and current rates include wholesale, variable, and fixed rates.

The reduction follows a previous hike in the excise tax, which took effect in July. At the beginning of 2020, the tax was 29.3 cents.

Nebraska’s gas tax is calculated twice a year based on three factors: a fixed rate which is set by the Legislature, a wholesale tax rate that varies based on the price of fuel, and a variable tax rate, which is adjusted to pay for transportation spending budgeted by the Legislature.

Most of the receipts go to the Nebraska Department of Transportation, while cities and counties split a share of the remainder.