Four States have provisions in their statutes that will increase the state motor fuel tax rate when the Federal tax rate is decreased. They include California, Nevada, Oklahoma, and Tennessee.

California
CALIFORNIA CODES
REVENUE AND TAXATION CODE
SECTION 7351-7357

7351. (a) For the privilege of distributing motor vehicle fuel, a

license tax is hereby imposed upon distributors for each gallon of

fuel distributed at the following rate per gallon:

(1) Fourteen cents ($0.14) during 1990, on and after August 1.

(2) Fifteen cents ($0.15) during 1991.

(3) Sixteen cents ($0.16) during 1992.

(4) Seventeen cents ($0.17) during 1993.

(5) Eighteen cents ($0.18) on and after January 1, 1994.

(b) If the federal fuel tax is reduced below the rate of nine

cents ($0.09) per gallon and federal financial allocations to this

state for highway and exclusive public mass transit guideway purposes

are reduced or eliminated correspondingly, the tax rate imposed by

this section, on and after the date of the reduction, shall be

increased by an amount so that the combined state and federal tax

rate per gallon equals the following:

(1) Twenty-three cents ($0.23) during 1990, on and after August 1.

 

(2) Twenty-four cents ($0.24) during 1991.

(3) Twenty-five cents ($0.25) during 1992.

(4) Twenty-six cents ($0.26) during 1993.

(5) Twenty-seven cents ($0.27) on and after January 1, 1994.

(c) If any person or entity is exempt or partially exempt from the

federal fuel tax at the time of a reduction, the person or entity
shall continue to be so exempt under this section.

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Nevada
NRS 365.185  Additional excise tax levied on gasoline if federal tax reduced or discontinued. [Effective through December 31, 2001.]

1.  In addition to any other tax provided for in this chapter, there must be levied an excise tax on gasoline.
2.  This tax must be imposed and will increase if the tax collected by the Federal Government pursuant to the provisions of 26 U.S.C. § 4081 or any other tax collected by the Federal Government relating to gasoline is reduced or discontinued in whole or in part. The amount of the tax so imposed by this state must be equal to the amount by which the federal tax is reduced.
3.  This tax must be accounted for by each dealer and collected in the manner provided in this chapter. The tax must be paid to thedepartment and delivered by the department to the state treasurer.

(Added to NRS by 1973, 584; A 1975, 1692; 1997, 2965)

NRS 365.185  Additional excise tax levied on motor vehicle fuel if federal tax reduced or discontinued; duties of suppliers and department. [Effective January 1, 2002.]

1.  In addition to any other tax provided for in this chapter, there is hereby levied an excise tax on motor vehicle fuel.
2.  This tax must be imposed and will increase if the tax collected by the Federal Government pursuant to the provisions of 26 U.S.C. § 4081 or any other tax collected by the Federal Government relating to motor vehicle fuel is reduced or discontinued in whole or in part. The amount of the tax so imposed by this state must be equal to the amount by which the federal tax is reduced.
3.  This tax must be accounted for by each supplier and collected in the manner provided in this chapter. The tax must be paid to the department and delivered by the department to the state treasurer.

(Added to NRS by 1973, 584; A 1975, 1692; 1997, 2965; 1999, 1009, effective January 1, 2002)

Oklahoma
§68-500.4A.

A. In the event that, by federal law, the federal excise tax imposed on gasoline or diesel fuel or both is reduced from the rate imposed on January 1, 1996, there shall be levied a tax equal to the reduction in the federal excise tax on gasoline or diesel fuel or both. The tax on gasoline or diesel fuel or both shall be imposed beginning the first day following the reduction in the rate of the federal excise tax on gasoline or diesel fuel or both. The tax imposed by this subsection resulting from a reduction in federal excise tax on gasoline or diesel fuel or both shall not include any reduction in federal excise tax imposed on diesel fuel for use in trains pursuant to the Internal Revenue Code, 26 U.S.C., Section 4041, in that the federal excise tax levy on diesel fuel for use in trains is not appropriated or apportioned to the Federal Highway Trust Fund.

B. The tax levied pursuant to subsection A of this section shall be in addition to and applicable to all gasoline and diesel fuel subject to the tax imposed and levied pursuant to Section 500.4 of Title 68 of the Oklahoma Statutes. It is the intent of this section that the tax shall be conclusively presumed to be a direct tax and shall be a direct tax on the retail or ultimate consumer precollected for the purpose of convenience and facility to the consumer. The levy and assessment on other persons as specified in the Motor Fuel Tax Code shall be as agents of the state for the precollection of the tax. The provisions of this section shall in no way affect the method of collecting the tax as provided in the Motor Fuel Tax Code. The tax imposed by this section shall be collected and paid at those times, in the manner, and by those persons specified in the Motor Fuel Tax Code.

Tennessee
67-3-1306. Maintenance of funding under highway trust fund.

Notwithstanding any provision of law to the contrary, if the federal government reduces or eliminates any or all taxes imposed by title 26 of the United States Code and allocated by chapter 98 of that title of the federal highway trust fund, the existing state tax imposed on the sale and/or use of such products shall be adjusted so as to maintain the amount of funding for the Tennessee department of transportation generated by the federal tax. The adjustment in the state tax shall become effective simultaneously with the reduction in the federal tax. The department of revenue is hereby directed to collect such taxes and allocate such taxes in their entirety, less the appropriate cost of administration, to the state highway trust fund for use by the department of transportation. If the federal goverment elects to increase any or all taxes imposed by title 26 of the United States Code and allocated by chapter 98 of that title to the federal highway trust fund after it has reduced or eliminated such taxes, the state tax on the sale and/or use of such products is hereby reduced equal to the amount of the increase by the federal government. No amounts of revenue received pursuant to the provisions of this section shall be pledged specifically to the payment of debt service on any state bond or note. 

[Acts 1997, ch. 323, § 1.]