In recent weeks, the cost of gas hit the highest recorded average price in history at $4.33 per gallon. Among the causes is the instability in the market due to the Russia-Ukraine War which was a factor that led gas prices to rise 48% in one year. In an effort to provide some relief to their residents, several states have implemented or are proposing various forms of relief from their respective state gas tax.
“We must do all that we can to address this now at the state government level and offer our support to hard-working families”
Efforts to Combat Rising Gas Prices
Although many states have legislation in various stages, only three states have fully enacted a gas tax suspension – Maryland, Georgia and Connecticut.
Maryland was the first state to suspend their gas tax on March 18th when Governor Larry Hogan signed emergency legislation to suspend for 30 days the state’s 36.1 cents per gallon tax, which was immediately effective.
Later that same day, Governor Brian Kemp signed House Bill 304 to temporarily suspend Georgia’s gas tax through May 31st. Connecticut followed shortly thereafter when Governor Ned Lamont signed emergency legislation effective April 1st to June 30th. The legislation not only suspended the 25 cents per gallon excise tax, but it also suspended public transportation fares.
In addition to these efforts, the governors of Colorado, Michigan, Minnesota, New Mexico, Pennsylvania and Wisconsin joined together to send a letter to U.S. congressional leaders asking them to support a bill that would suspend the country’s federal gas tax of 18.4 cents per gallon.
Other states are still working to provide relief in their own way. To this end, California legislators first proposed an immediate suspension of their 51 cents gas tax, but that quickly failed. California Governor Gavin Newsom then suggested a gas tax rebate as a solution to concerns that the gas tax suspension would reduce infrastructure funding. On March 23rd, Governor Newsom officially revealed his proposal for a tax refund in the form of $400 debit cards for registered vehicle owners, which would begin in July if approved by the legislature.