States have been increasing their gasoline taxes and other highway user charges such as vehicle registration fees and drivers’ license fees. These moves are continuing as many states are in the midst of highway construction programs which cannot be sustained without further increases. States have been increasing taxes on cigarettes and tobacco products, both to raise additional revenues and discourage smoking.

As deregulation continues to affect natural gas, telecommunications, and electric power, states have been forced to reconsider special excise taxes on companies providing these services. The trend is toward eliminating special public utility taxes in favor of treating companies in these industries more comparably to companies engaged in manufacturing.