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State to Suspend Excise Gas Tax on April 1

Posted on March 23, 2022


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The House of Representative unanimously approved HB 5501 An Act Suspending Certain Gas Taxes and Sales and Use Taxes on Certain Clothing and Allocating Funds for Free Public Bus Services on Wednesday, March 23.

This law has three parts to it, including the i.) suspension of the state’s excise gas tax beginning April 1, 2022, to the conclusion of the current fiscal year, ii.) implements a tax free week from April 10-16 on purchases of clothing and footwear. Items sold at $100 or under will not be subjected to state sales tax during the week-long holiday, and iii.) the temporary suspension of bus fare.

In addition to the suspension of the gas tax, Republicans would like to implement long-term relief. They have proposed a bill that would eliminate the Highway User Tax (HUT). The HUT legislation was approved just last session, despite the hardships of the pandemic. This policy has increased the cost of any good delivered by a truck to Connecticut retailers.

To date, the bill repealing the HUT has not been scheduled for a public hearing. The current legislative session concludes on May 4, 2022.

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