Drivers in Arizona's most-populated metropolitan area pay much more for fuel than the national average, but it's not because of the taxes.
The nonprofit Tax Foundation on Tuesday released its annual data on motor fuel taxes as of July 2023. Arizona's 19 cents per gallon in combined taxes ties it with New Mexico for the seventh-lowest in the nation.
At $4.07, AAA shows Arizona's average price per gallon of regular unleaded is 21 cents higher than the national average despite a low governmental burden. That's due to Maricopa County. The state's major metropolitan area averages $4.27 a gallon due to federal regulations requiring a cleaner-burning fuel typically refined in California.
Local leaders are pushing back against newly-proposed federal rules that would increase red tape in the Phoenix area, saying the proposed carbon emissions reduction requirement isn't feasible.
Beyond Maricopa County, Arizona's gas prices fall more in line with national averages or less. Yuma County's average for a gallon of regular unleaded is $3.19. The border county lies on the state line with California. With the nation's highest tax burden and additional cost due to a carbon auction system, the state line between the two states has the largest disparity of prices than any other location in the country.
The Tax Foundation admits that few drivers are likely thrilled at the thought of increased costs at the pump due to state and local tax burdens, but the structure of a "use tax" is generally seen as more equitable than other types of taxes.
"This public finance concept is a fee imposed by the government with the primary purpose of covering the cost of provided services," the report's author said. "In general, drivers benefit from the services that their gas tax dollars pay for, like road construction, maintenance, and repair. Because gas taxes connect drivers to the costs of road upkeep, they encourage efficient road use, which helps limit congestion and the wear and tear that comes from overuse."
