By Nathalie Voit
Last week, Gov. Ned Lamont (D-CT) signed emergency bipartisan legislation suspending Connecticut’s excise tax on gasoline from April 1 to June 30, becoming the latest governor to introduce a so-called “gas-tax break” to help his state cope with surging gas prices.
The legislation, known as House Bill 5501, will pause the state’s 25-cents-per-gallon tax on gasoline. The new law aims to provide fuel relief for residents who have seen their purchasing power rapidly deteriorating at the pumps. According to AAA, the average price for a gallon of regular gasoline in Connecticut is $4.309 as of March 28, six cents higher than the national average.
Additionally, House Bill 5501 will pause fares on public buses statewide during that same period. It will also create a one-week sales tax holiday on clothing and footwear under $100 from April 10 to April 16, the governor’s office said.
The legislation passed with unanimous approval from policymakers in the House and Senate.
“With this bipartisan action, we are taking steps to provide some relief to consumers as they face rising prices due to a number of international dynamics and market instability that go far beyond our state,” Gov. Lamont said. “Connecticut is in a stronger fiscal position than ever before, and I am determined to use every tool available to provide relief for our residents. I am appreciative that legislative leaders from both parties successfully worked with my office to get this done, and I think these actions are a good indicator that in the coming weeks, we will be able to once again come to a bipartisan agreement to provide more tax relief to the people of Connecticut.”
Lt. Governor Susan Bysiewicz said the administration was working “to provide immediate relief to Connecticut consumers who are paying higher prices at the gas pump as the result of the crisis in Ukraine and international inflation.”
“Putting more money back in consumers’ pockets will help alleviate some of the strain families are experiencing as we emerge from the impact of the COVID-19 pandemic,” she said.
Connecticut’s gas-tax holiday is the latest in a series of gas tax suspension policies aimed at easing consumers’ pain at the pump.
On March 18, Maryland and Georgia temporarily halted their state gas taxes of $0.361/gallon and $0.291/gallon. California followed suit, proposing its own $11 billion fuel tax relief package on March 23. The state’s gas tax is the second-highest in the nation at 53.3 cents per gallon, according to tax solutions firm IGEN.
Other states like Ohio and West Virginia have already introduced legislation or called for a special session to temporarily halt their state’s motor fuel tax.
Some lawmakers in Congress are even calling on the Biden administration to suspend the federal gas tax, which is just over 18 cents per gallon, according to the Energy Information Administration. The Gas Prices Relief Act of 2022 was signed by the Democratic governors of five states, including Gov. Gretchen Whitmer of Michigan and Gov. Tom Wolf of Pennsylvania, whose state has the highest tax rate at $0.586/gallon.
