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Gas Tax News Across USA, April 2022

Gas Tax News Across USA, April 2022

Gas prices have been soaring high for a few months now due to various external factors such as the restriction on Russian oil imports, supply chain disruptions, high inflation rates, and the keystone XL pipeline abolition. To deal with these sky-high prices, various state governors across the US are coming up with plans to temporarily suspend gasoline excise tax in order to provide some relief to Americans.

Connecticut: Connecticut state’s Governor signed emergency legislation, H.B. No. 5501, which suspends Connecticut’s excise gas tax from April 1, 2022 through June 30, 2022. This will suspend $0.25/gallon on gasoline and $0.401/gallon on diesel. The bill also suspends statewide public bus fares for the same period. These steps will help mitigate the financial crisis which consumers are currently encountering and provide some assistance to the people of Connecticut.

Maryland: The governor of Maryland also signed a similar legislation instituting a gas tax holiday for the period beginning March 18, 2022, through April 16, 2022. Maryland, being the first state to take this action in response to rising fuel prices, suspends $0.361 on gasoline and $0.3685 on diesel purchase in the state.

Georgia: Governor Kemp of Georgia’s Department of Revenue also signed HB 304 , suspending collection of excise fuel taxes from March 18, 2022, through May 31, 2022. This suspension on the collection of excise taxes will help ease the burden on Georgia taxpayers by reducing prices on gasoline by $0.29/gallon and diesel by $0.326/gallon.

Illinois: A budget bill for fiscal year 2023 was passed by the legislature freezing the state fuel tax rate to $0.39/gallon through January 1, 2023 which was otherwise going to increase in July 2022.

New York: The state of New York has enacted a bill offering a gas tax holiday which suspends the state fuel excise tax, state sales and use taxes for the period beginning June 1, 2022, through December 31, 2022.

Various other states across the USA are also proposing gas tax holidays to reduce the burden on citizens and continue normal functioning. Various such bills are under consideration by the governor or in the legislation. Some of these states include:

Alabama: HB516 is under consideration which if passed would suspend state excise taxes on motor fuels and gasoline beginning May 1, 2022, through September 1, 2022.

Alaska: The governor of Alaska amended House Bill 104, which if passed would immediately suspend tax collection on motor fuel, aviation jet fuel, and aviation gas until June 30, 2023.

Florida: HB 7071 is passed by the senate which if approved will result in a gas tax holiday for the month of October 2022.

Idaho: HOUSE BILL NO. 492 is in the legislature which if passed will reduce the state motor fuel tax from $0.32/gallon to $0.16/gallon effective July 1, 2022 through June 30, 2024.

Minnesota: A gas tax holiday has been proposed in Minnesota which if approved will suspend the state gas tax of 28.5 cents/gallon beginning from Memorial day and would last up to labor day.

Mississippi: The governor has proposed to suspend the state’s motor fuel tax for six months.

California: California's governor Newsom is strategizing a plan to provide $400 worth of debit cards to vehicle owners starting in July. The governor also plans on providing 3 months of free public transportation service to Californians. This move will help in subsiding the rising gas prices issue and save around 3 million Californians their everyday transit fare.

New Hampshire: New Hampshire’s governor is also in favor of temporarily suspending the 22.2 cents fuel tax for 2 months.

New Jersey: A legislation has been introduced in the assembly which if passed would grant a three-month suspension or reduction on fuel taxes.

Ohio: Senate bill 277 has been introduced in the legislature which would temporarily reduce fuel excise tax rates for 5 years effective October 1, 2022.

Pennsylvania: H.B. 2453 has been introduced in the legislature, which would deliver relief to tax payers by suspending Pennsylvania’s gasoline, and diesel taxes for six months.

Rhode Island: The Senate Republican proposed to abolish the state gas tax for the remaining of 2022. The bill is before the state legislature and is awaiting approval.

Virginia: The governor of Virginia is in favor of suspending Virginia’s gas tax for three months, and has sent legislation to the general assembly with regard to the suspension. If this Legislation is passed, Virginians will experience a tax-free summer beginning May through July.

West Virginia: A few Democrats have requested the Governor to hold a special legislative session to bring about a temporary tax suspension of 37.5 cents on the motor fuel tax.

The governors of states from Michigan, Colorado, Minnesota, New Mexico, Pennsylvania and Wisconsin have sent a joint letter to congress offering support to federal legislation to suspend the federal fuel tax until the end of 2022.

Keeping into consideration the current market conditions and the rising volatility of the prices, its important for the distributors and manufacturers to constantly keep a watch on the changing tax rates from different jurisdictions and be vigilant about its effect on businesses. Avior’s FueTax compliance software can help you deal with the constantly changing market conditions by developing signature-ready tax returns, thereby enhancing filing accuracy and efficiency.

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