Candelora and GOP Succeed in Passing Gas Tax Cap Bill

It took a number of years, but Republicans today succeeded in convincing their Democratic counterparts to cap the gross receipts tax on wholesale gasoline, a move that will restrict the rising costs of fuel and provide some relief to Connecticut motorists who have been paying among the highest prices per gallon in the nation. “Five years of perseverance paid off,” said Rep. Candelora. “I am pleased that the legislature came together in reaching the conclusion that state residents need relief from the damaging and excessive tax Connecticut has on motor fuels – nearly the highest in the entire nation.” Republicans put forth various forms of gas tax relief seventeen times over the last five years but at each turn their proposals were rejected. But as the cost of fuel has jumped this year, and public outrage escalated over the high cost of fuel, Democrats changed their minds. The legislation will cap the 7 percent gross receipts tax once the wholesale price of gas reaches $3 per gallon. The gross receipts tax, a hidden tax on the wholesale cost of gasoline in addition to the standard 25-cent state gas tax, climbs as the price of gasoline does. The bill passed both the House and Senate unanimously. Republicans also succeeded in getting the Democrats to make the cap permanent and not expire after one year as they originally proposed. But Candelora and Republicans also wanted to limit the tax at 7 percent to prevent a scheduled increase on July 1, 2013 to 8.1 percent which will cost motorists $55 million next year. That amendment failed largely along party lines 94-53. “While I would have preferred to see us cancel the tax increase scheduled for next summer, I am pleased that we found bipartisan agreement on this critical tax relief which will have on overall positive ripple effect throughout the state economy,” said Candelora. “However, this is a very good day for the state overall.” The bill will now head to Governor Dannel P. Malloy for his signature.