Gas tax suspension plans in NY, NJ, CT
NEW YORK - The national average price for a gallon of gasoline may have fallen from its record high, but motorists are still feeling the pain at the pump. In response, some state lawmakers are introducing legislation that would suspend gas taxes.
On March 11, the average price of gas across the country was $4.33. As of Wednesday, the national average was $4.25. AAA says the lower global price of crude oil and lower demand for gas is contributing to the decline.
Despite the drop, prices remain high. In New York, the average price at gas stations is $4.35 per gallon.
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The NY Senate has included in its budget proposal the suspension of the gas tax from May through December.
New York has a 17.3 cent petroleum business tax and an 8 cent fuel tax. There is also an 8 cent a gallon state sales tax.
Lawmakers hope to save consumers $648 million. Legislative leaders are negotiating with Gov. Kathy Hochul to pass a budget by April 1.
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In New Jersey, State Sen. Shirley Turner says she plans to introduce legislation to roll back the state's gas tax for 60 days. The current average in the Garden State is $4.19.
New Jersey has a gas tax of 42.4 cents per gallon. It is made up of a sales tax of 10.5 cents per gallon and a business tax of 31.9 cents per gallon.
Gas tax suspended in Connecticut
In Connecticut, Gov. Ned Lamont has signed a bill suspending the state’s 25 cents-per-gallon gas tax from April 1 to June 30.
The Democratic governor signed the legislation on Thursday, March 24, a day after it received unanimous bipartisan approval in the General Assembly.
The U.S. Congress is also considering offering relief to drivers through a stimulus check or new taxes on oil companies.
The rebate would follow the same phaseout as the most recent Economic Impact Payments (EIPs) where $100 will be given for single filers earning less than $75,000 and phased out to $80,000. The other part includes $100 for joint filers more than $150,000 and phased out at $160,000.
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Other states are following suit, Gov. Janet Mills of Maine has proposed increasing the state’s relief checks for residents to $850 in the face of record-high inflation and rising oil and gas prices.
With the Associated Press