‘Gas tax holiday' stuck in neutral as prices at the pump soar
Suspending the state fuel tax could save drivers 25 cents a gallon. But so far, Gov. Ned Lamont's proposal is failing to get traction at the state Capitol.
Even as gas prices approach $4 a gallon due to the war in Iran, Gov. Ned Lamont’s “gas tax holiday” proposal is stuck in neutral.
Connecticut lawmakers said the governor has not presented a formal plan – and many are raising budget concerns.
“WE’VE GOT TO GET PEOPLE RELIEF”
At the Darien service plaza along I-95, drivers are getting sticker shock.
“It feels like yesterday it cost me 30 bucks to fill up. So seeing 50, it’s crazy,” said Michael Vermes, who was driving from Boston to New York City.
To ease the pain, Lamont suggested temporarily suspending the state gas tax last week. Drivers would save 25 cents per gallon, while diesel trucks would keep 49 cents a gallon.
The governor appeared on MS NOW’s “Morning Joe” on Friday, arguing that drivers need immediate relief.
“Maybe this gas tax holiday, we get that done in a couple of weeks,” he said. “But it’s up to the Legislature; maybe they have some other ideas. We've got to get people relief.”
Lamont would pay for the “gas tax holiday” out of a $500 million surplus fund that is earmarked for $200 rebate checks this fall.
Connecticut last suspended the gas tax in April 2022 after Russia attacked Ukraine. That holiday lasted nine months, then the tax was phased back in.
STUCK IN NEUTRAL
At the state Capitol, a gas tax holiday is hitting some roadblocks.
“The governor just mentioned it as an off-hand remark. But apparently, his administration does not have a plan to actually implement it,” said state Sen. Ryan Fazio (R-Greenwich), who is also running for governor. “I’d like to see permanent relief in people’s electric bills, in people’s income taxes, and so on. But if there is a way to bring people together to reduce the tax burden at the pump, that's also a good idea.”
On the other side of the aisle, many Democrats worry about the longer-term budget impact – especially since much of the gas tax savings would go to out-of-state drivers.
“If you put a gas tax holiday on the board, would it pass? Yes,” said Connecticut House Speaker Matt Ritter (D-Hartford). “It’s a $40 million monthly hit. Then the question is, how long can you continue to do it? And then, what impact does it have on revenue that might prohibit us from doing more targeted credits and cuts to Connecticut taxpayers?”
Many Democrats want to tie a fuel tax suspension to longer-term priorities like a child tax credit and more school funding, which could take until May to negotiate.
“We’ll see how that works out in the budget,” Senate Majority Leader Bob Duff (D-Norwalk) told reporters. “We’ll see what happens over the next few weeks.”
Some drivers want savings right away.
“Right now, looking at $3.91,” Vermes said. “If they don’t do it, it’ll probably be over four bucks next week.”
But others would rather hold out for something more permanent.
“If you can remove car tax, you know? Save money for the individuals who have to travel so much,” said Isreal Perez, of Stratford.
WHAT’S NEXT?
State lawmakers are in session next week. But even if they reach a deal with Lamont on gas taxes, Ritter predicted that it probably will not come up for a vote until early April.
