Gov. Ned Lamont unveiled a proposal Monday to suspend one of Connecticut’s two taxes on gasoline until June 30 and he is urging the General Assembly to enact the measure as soon as possible. This is what you need to know.
The CT Gas Tax Holiday Proposal
The proposal is to suspend the 25 cent-per-gallon excise tax.
Taxes on Gas in Connecticut
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Connecticut has two taxes that apply to motor fuels.
The motor vehicle fuels tax is typically referred to as the state’s gas tax.
And there is the fluctuating petroleum products gross earnings tax.
Local
Connecticut Gas Prices
In Connecticut, the average price for regular unleaded gas reached $4.48 per gallon on Friday, exceeding a record of $4.39 set in 2008, according to AAA.
What Comes Next
Both the Democratic-controlled House of Representatives and Senate are scheduled to hold sessions on Wednesday. However, it’s unclear whether that will be enough time for both chambers to be ready to vote on the gas tax suspension or the other provisions.
Republican legislators, who last week called for suspending the state’s petroleum gross receipts tax until June 30, said they welcome Lamont’s proposal. However, they stressed that more needs to be done later on in this year’s legislative session to further reduce the tax burden on residents.
House Minority Leader Vincent Candelora, R-North Branford, said given the rules for states on spending federal COVID-19 relief funds, Connecticut is limited to spending about $180 million between now and June 30 on tax relief.
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The plan announced by Lamont would cost about $100 million.
The 2022 legislative session adjourns May 4.
