Senator Kelly Applauds Passage of Legislation Providing Gas Tax Relief

Hartford – State Senator Kevin C. Kelly (R-21) applauded the bipartisan passage of Senate Bill 457, An Act Concerning A Cap On The Petroleum Products Gross Earnings Tax And Penalties For Abnormal Price Increases In Certain Petroleum Products, that would cap the gross receipts tax on gasoline and provide relief for families as these prices continues to rise.

“I am pleased that this legislation will now bring real relief to middle class families struggling with rising gasoline prices,” said Senator Kelly. “It is by no means the final step, but nevertheless it is a good first step forward.”

As gas prices have risen, the proposal to cap the gas tax has gained momentum in recent years. Thanks to the efforts of State Senator Len Suzio (R-13) who launched a petition drive over the past year, nearly 4,000 signatures were gathered in support of this legislation.

“Today, this legislation is the result of a long effort to lessen the effects of rising prices on families,” continued Senator Kelly. “I would like to thank all those who signed the petition, and this is another example of government responding to your input.”

This bill would cap the 7.53% tax on the wholesale price of gas once it reaches the cost of $3.00 per gallon. In Connecticut, gasoline is taxed three times, twice on a state level and once on a federal level. The first is a state flat tax of 25 cents per gallon. The second is a state gross receipts tax that is paid by the wholesale distributors but is passed on to gas stations and consumers. This tax is 24 cents according to current wholesale prices, but it increases when these wholesale prices rise. Third, the federal tax is 18.4 cents per gallon.

“With the price of gas reaching record highs, this necessary relief for families cannot come soon enough,” concluded Senator Kelly.

Senate Bill 457 was passed by the Senate by a vote of 36-0 shortly after 4:00 p.m. on Wednesday, March 28th.