Now that you mention it, there's a lot more gas stations I've noticed that don't offer the mid-grade fuel. I'd say its already in the process of being slowly phased out (probably because few people use it). Maybe it's because they need to make room at the pumps for E85 now.

whybesad and cjjs wrote:
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"I don't agree with all these foreign gas station owners who don't pay a nickel in taxes."
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"Whybesad is right they own the station for up to 7 years and then change ownership to another relative and keep the tax free cycle going."
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Could either one of you provide information to verify these claims?
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I believe it's just another "urban myth."
Please correct me if I'm wrong.

whybesad,
No, I've never used mid-grade gasoline. I don't know anyone who has, or why they would...anyone else?

Removing this tax might seem like a good idea, but it's really a short-term solution to the problem.
The tax does go into a fund to help offset costs of road repair, etc..
Does anyone think by eliminating this tax, we'd be in a better place? There still is a shortage on the oil supply. Removing this tax is about as short-sighted as the Gas-Tax Holiday program. This money generated in taxes is needed. It is logically taxing people who use the resources..drivers are being taxed for the gas they use, and that is going to help fix the roads they use..

Our State taxes are suppose to go towards the transportation fund which the good Gov. likes to raid every now and again. Anyway Illinois has toll ways that are suppose to pay for their roads. Why is it that the price of gas in Illinois is the same as it is here or even higher? We really need to get rid of the boutique fuels that drive up the cost to refine the oil into gas. Every region has their own special blend to comply with EPA regulations why not just have a couple of blends? And why do we have a mid grade gasoline? Does anybody even use that?

The law's purpose is to protect independent operators from chains (and now places like Wal-Mart that sell gas). In other words, a chain could use its deep pockets to finance a gas war (remember those?) or use gas as a loss leader for other parts of its business. Whatever the merits, the effect on retailers should be considered.
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It is probably notable that in 1938, almost no gas stations had anything resembling today's convenience stores, which is where most operators make their money. It's the bread and milk markups, not the gas.

The Wisconsin supreme court said this law is illegal a long time ago but our state legislators do nothing about it.

Yes janesgirl, gas taxes are supposed to go towards roads (whether this actually happens or not, I can't comment on). To clarify, I'm not trying to say that gas tax is a bad thing. I would much rather have roads paid for by those who use them most, rather than tax everyone, and paying for roads through gas taxes is a good method of accomplishing this (at least until more EVs gain popularity).

My beef is with people who don't think oil companies deserve to get profits. They depend on those profits to encourage investors, and to continue technology research and development, surveying for potential future drilling sites, etc. People tend to have this misconception that the oil company people who receive these profits are just greedy and taking advantage of the american public. Not that I'm accusing you of anything janesgirl; you just asked a simple question.

Don't most of the taxes from the sale of gas go to repair/rehabilitate our roads?

They could mark it up as high as they want, but they don't. Whenever gas prices go up or oil companies report big profits, everyone always cries "price gouging" but every congressional investigation I'm aware of has always come to the conclusion that retailers are not jacking up their prices unreasonably. The record profits from an oil company (which one I forget now) reported within the last year equated to about $0.10 per gallon, which is nothing compared to the federal and state taxes per gallon. Others are right; gas station owners barely make any money on gas, and the profits to oil companies barely impact the price per gallon.

You are not reading the law correctly! It does not say you can only raise the price 9%, it says at least 9%. there is a big difference! They all ready can change it up as high as they want.

Most people do not understand the economics of business. You call your supplier (vendor) and get a price for an item. You purchase that item. Now in order to make a profit, you need to charge above the price you paid. This is anywhere from 20-50% depending on your overhead (rent, payroll, taxes, insurance, etc.) costs and demand.
I use to work for a gas station. The owner told me, he does not make hardly anything per gallon of gas. He makes his money on the food and beverages that are sold in the store. Because those are not regulated by law.
So imagine if there was no law, a gas station owner could mark up his gas by as much as 50%. So take the market price shown in the article, $3.29, and mark that up 50% ($4.94). So which is better? A law that limits them to 9%, or no law that gives them unlimited markup?
The main problem is the taxes on the gas. Did you know that anywhere from $0.25 - $0.50 a gallon goes to the state for taxes?
I say keep the law.

Whybesad is right they own the station for up to 7 years and then change ownership to another relative and keep the tax free cycle going.

Delta, I complain every week when I go get my groceries. One week milk is $2.29 a gallon the next week it is $3.69. Everything has jumped up several dollars and it hurts!! Ouch. Between that, gas and utilities it has put a major hurt on our budget!! :)

I'm more concerned about the States mark-up on fuel and the federal mark-up. Heck the gasoline stations are a business and should be allowed to make money. I don't agree with all these foreign gas station owners who don't pay a nickel in taxes.

Grocery retailers mark their goods up as much as 36%+. You don't see a lot of people complaining about food costs as much as they do about gas prices. When in reality this should be the area of most concern.

Before everybody gets all excited about this, consider: Even without the law the retailers are going to mark-up the price by some margin, they have to in order to meet payroll and other overhead costs, afterall.
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Fact is, 9.2% is far lower than the typical retail margin on other goods. And, as the article notes, retailers can already go lower than 9.2% to meet competitor's prices.
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Since the law probably has little impact on the marketplace, it might as well be repealed. Just don't expect some kind of windfall for consumers.

either rid this law, or revamp it to today's standards and put it up for evaluation every x number of years... it's just interesting how this particular research group is doing a comparative study on how what was good then is hurting us now... they say history repeats itself...

Free- yes it would considering I was excited about paying $3.89 a gallon the other day thats sad.

30 cents could change the outlook around here.

This is going to be a fun one

Thats just a shade over 30 cents a gallon. This law was put into place in 1939. It is time for it to go.