Pennsylvania would set fuel-tax rates using six nearby states' average

The Department of Revenue would set the average wholesale price to produce a per-gallon oil-company fuel-tax rate matching the average gas-tax rate in six nearby states. It covers liquid fuels and fuels used or delivered in Pennsylvania. The states are New York, New Jersey, Delaware, Maryland, West Virginia, and Ohio. The calculation would apply to fuel used or delivered in Pennsylvania after December 31, 2026.

Revenue would estimate lost tax revenue, the Office of the Budget would certify the estimate, and the State Treasurer would transfer that amount from the General Fund. The money would go to the Motor License Fund or another account allowed to receive revenue from the specified fuel taxes. Revenue would compare the tax collected in the previous calendar year with the amount that would have been collected using the average-wholesale-price method used from 2017 through 2026. Revenue must provide the first estimate by February 1, 2028, and another estimate by February 1 each year after that. The Budget Office must certify the amount within 30 days of receiving the estimate, and the Treasurer must transfer it within 60 days of receiving the certified estimate.