State consumer taxes keep moving higher.

An annual Commerce Clearing House survey of state sales, cigarette and gasoline taxes found that only 28 states had held the line on all three levies in the year ending July 1, 1993

Gasoline taxes. Thirteen states and the District of Columbia raised gasoline taxes, with the largest increase ($.06 per gallon) imposed by New Mexico. Gail D. Reese, New Mexico's deputy secretary for taxation and revenue, believed reports that impending legislation to increase the federal gasoline tax would provide a credit for state gasoline taxes already in place were responsible for the flurry of gasoline tax increases.

West Virginia raised gasoline taxes $.05 per gallon, followed, in descending order, by Montana ($.04); Connecticut and Delaware ($.03); the District of Columbia, Oregon and Rhode Island ($.02); Nevada ($.0175); California, Ohio and Wisconsin ($.01); Nebraska ($.007); and North Carolina ($.001).

Connecticut, with a tax of $.29 per gallon, imposed the highest gasoline tax, and Florida, with a tax of $.04 per gallon, had to lowest. In addition, the federal gasoline tax increase, to $.184 from $.141 per gallon, went into effect on October 1.

Cigarettes taxes. Thirteen states and the District of Columbia raised cigarettes taxes as of July 1. Reese said, "There is very little concern over raising 'sin taxes' on tobacco and alcohol. People increasingly are aware of the social costs of these substances and believe the people who use them should pay a greater percentage of these costs."

Massachusetts imposed the largest increase of $.25 per pack, followed by Washington ($.20), New York ($.17), the District of Columbia and North Dakota ($.15), Illinois ($.14), Arkansas ($.095), Nebraska and Rhode Island ($.07), New Mexico and Ohio ($.06), Missouri ($.04) and Connecticut ($.02). In addition, Hawaii changed its cigarette tax from 40% of the wholesale rate (about $.47 per pack) to a flat rate of $.60 per pack.

The District of Columbia had the highest cigarette tax ($.65 per pack), and Virigina had the lowest ($.025 per pack).

Sales taxes. As of July 1, only one state, Wyoming, had increaed its state sales and use tax, which rose 1%. Reese observed that, at this point, almost all states would rather expand their sales tax bases by taxing new products or services than raise their sales tax rates. "Several states with financial problems passed legislation involving fairly extensive tax base expansion, even though they did not raise their rates," she said.

Mississippi and Rhode Island imposed the highest state sales tax rates (7%), and Colorando imposed the lowest (3%). However, five states--Alaska, Delaware, Montana, New Hampshire and Oregon--did not impose sales taxes.