With a small number of stations, it's easy to set the price at the same comfort level. In River Falls, many drivers contrast the one higher local price with the varied, lower prices across the border in Minnesota. However, not only do Minnesota dealers pay a lower state tax, they also pay a lower federal gas tax. The federal gas tax is 18.4 cents per gallon, but Minnesota dealers get a 5.4 cent credit per gallon for selling a mandated ethanol-blend of gas. The differences in the two taxes come to a whopping 14.2 cents per gallon.
Ethanol is a grain alcohol.
For several months of each year, Minnesota dealers are also hit with a 2-cent tax to pay for the state's cleanup of old underground fuel tanks. That tax is not now active. Wisconsin's 28.8 cent tax includes a similar 3-cent fee, one that is active 12 months a year. Dick Rinehart, owner of Dick's IGA and the new Dick's Plus, sells Texaco gas. We were killing young people because of that law.