Governor Ned Lamont (D) this week proposed a holiday from the state’s 25-cent-per-gallon gasoline tax to last through the month of June.
He said he does not believe the gas tax break can be extended beyond July 1 insofar as Connecticut’s acceptance of federal funds under President Joe Biden’s American Rescue Plan Act (ARPA) restricts the state as to how much it can reduce taxes. The governor also voiced concern that a longer tax holiday would compromise the state’s ability to fund transportation. The gas tax’s suspension will cost the state over $90 million.
“We have room to [provide relief] between now and June 30 without violating any of the rules, which is really important,” Lamont told reporters. “If you went out longer, A; you would impact our ARPA ruling in terms of what you can cut, and you’d really impact the solvency of the Special Transportation Fund.”
In recent months, inflation has raged regarding consumer goods generally. The Consumer Price Index for urban consumers in the Northeast rose 0.7 percent in February, according to the U.S. Bureau of Labor Statistics. Pain has been especially pronounced at the fuel pump, with the average per-gallon cost of gasoline shooting up about 75 cents to about $4.45 in Connecticut since Russia invaded Ukraine last month.
Lamont, speaking of his discussions with legislators, said, “I think I can tell you there was strong consensus that now is the time to provide immediate relief: aid to the people of Connecticut broadly in terms of inflationary pressures and specifically as regards drivers getting hit at the pump.”
Lamont said that he wants to implement other forms of relief to taxpayers and ratepayers in the next fiscal year as well, including a reduction of between $200 and $300 on car property taxes on average. He has also called for a new one-time weeklong holiday from the 6.35-percent sales tax on clothing purchases in the next few weeks in addition to the annual sales-tax holiday that occurs for a week in August. The governor furthermore envisions providing free bus service across the state throughout next month.
Republican lawmakers are hailing the gas tax announcement, having pressed for such a move. They are urging that vote on the measure happen next week, although the Democrats who control the legislature have been less hurried regarding a timetable. The latter party’s leaders have predicted a vote will occur within the next two weeks.
“Your voices are being heard,” the state Senate Republican Caucus tweeted. “Last week CT Republicans called for suspending the gas tax. You called for action. Today, the governor is agreeing that we must provide relief for CT families.”
🚨Your voices are being heard. Last week CT Republicans called for suspending the gas tax. You called for action. Today, the governor is agreeing that we must provide relief for CT families.#inflation #gasprices #Stopthegastaxct #BetterWayCT #gastax https://t.co/msF1XVXf7s
— CT Senate Republicans (@CTSenateGOP) March 14, 2022
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Bradley Vasoli is managing editor of The Connecticut Star. Follow Brad on Twitter at @BVasoli. Email tips to [email protected].
Photo “Ned Lamont” by The Office of Governor Ned Lamont. Background Photo “Gas Station” by Niagara. CC BY 3.0.
