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It's understandable that Americans want to find pricing relief anywhere they can. Lawmakers there also declined to prevent a gas tax increase from taking effect July 1, saying that the state cannot afford to lose the $200 million in annual funding the tax increase would generate for roads, bridges and transit projects. Maryland, one of the first states to enact a gas tax freeze in March, let its suspension expire after 30 days.

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Tennessee has suspended its vehicle registration fee.

Colorado lawmakers passed a bill delaying its road usage charge.

New York suspended its 16 cents-per-gallon state gas tax for the rest of the year, joining Florida, Connecticut, Maryland and Georgia, which earlier enacted temporary state gas tax suspensions.

Illinois earlier suspended a similar scheduled increase.

Andy Beshear (D) suspended a 2-cents-per-gallon increase in the state gas tax scheduled for July 1. Here's a round up of where state gas tax suspensions stand: Other options include tapping the Strategic Petroleum Reserve, encouraging oil production, and allowing more ethanol in gasoline. Temporarily suspending the gas tax is one of the few tools the federal government has to cut gas prices however, Kiplinger explains.

This is consistent with legislation proposed in the Senate and the House to advance a responsible gas tax holiday.' 'With our deficit already down by a historic $1.6 trillion this year, the President believes that we can afford to suspend the gas tax to help consumers while using other revenues to make the Highway Trust Fund whole for the roughly $10 billion cost. 'The President is also calling on Congress to make sure that a gas tax holiday has no negative effect on the Highway Trust Fund,' the fact sheet said. That's money that won't be available for road repairs and other needed infrastructure projects.īiden's announcement said he will call for using other revenue sources to make up for the shortfall however, and said he does not want to take money away from the Highway Trust Fund. However, the Federal gas tax suspension could be detrimental to the long term health of our infrastructure. The gas tax provides an important source of funding for road construction and the overall loss of tax revenue is estimated to be close to $15 billion. New research has shown that gas tax holidays do not automatically result in significantly lower prices and big savings for motorists at the pump, and even if savings from lifting those taxes were passed directly to consumers – which isn’t guaranteed – the savings for one fill-up could only be a few dollars.įor example, a person who drives 12,000 miles a year in a car that averages 25 miles per gallon would only save about $55 if the federal gas tax was suspended for the rest of 2022. Energy Information Administration, while the federal tax on diesel stands at 24 cents per gallon. The current federal gas tax is about 18.4 cents, according to the U.S. He is also asking states to take similar action to provide some direct relief, whether suspending their own gas taxes or helping consumers in other ways.Īccording to the American Road & Transportation Builders Association (ARTBA) lawmakers in New York, Florida, Connecticut, Maryland and Georgia have suspended their state gas tax collections this year as pump prices soar to over $5 per gallon. So far this year, ARTBA’s Transportation Investment Advocacy Center (TIAC) has tracked 72 bills in 26 states that suspend or repeal transportation funding revenue sources. President Joe Biden is calling on Congress to suspend the federal gas tax for three months, through September.

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