Gov. Lamont calls for gas tax holiday amid rising prices
Gov. Ned Lamont is proposing a pause in the state’s gas tax to help drivers struggle with the sudden surge in gas prices.
Lamont told reporters during a news conference in Meriden that he planned to talk with lawmakers about suspending the state’s $0.25 per gallon tax on gas, and $0.49 per gallon tax on diesel.
“Today this war is costing us close to a billion dollars a day that’s impacting the choices we have to make right here in Connecticut,” Lamont said, referencing the war in Iran.
He floated the idea during a press conference outside an oil delivery company to highlight the increase in gas and oil prices since the war started.
Lawmakers from both sides say they’re interested, but they want more details.
“Anytime we’re talking about affordability and how to make things cheaper for Connecticut residents, we generally support that,” said Rep. Vincent Candelora (R-Minority Leader).
Sen. Bob Duff (D-Majority Leader) said lawmakers are focused on affordability, so addressing gas prices fits in that discussion.
“I just got gas the other day and I couldn’t believe how fast gas prices went up. My eyes popped out of my head,” Duff said.
Lawmakers have to approve any changes to the state’s tax structure, even temporary, and they want to know how long of a gas tax holiday Lamont is proposing.
President Donald Trump and the U.S. Defense Department have not given a definitive timeline for the war or a possible withdrawal from Iran.
Lamont expressed hope the war could end in a month and talked about the tax holiday lasting that long.
“If you’re doing 20 gallons a week, that would maybe save you five bucks,” he said. “You do that over a month, that saves you 20 bucks.”
Lamont previously proposed setting aside $500 million from a surplus to fund one-time tax rebates of $200 for individuals, and $400 for couples.
On Tuesday, he suggested the state could dip into that money to replace revenues lost from a gas tax holiday. Doing so would also reduce the rebate people could see if lawmakers adopt that plan.
Sen. Stephen Harding (R-Minority Leader) issued a statement that tried to shift the focus to his caucus’s proposal for a $1 billion income tax cut, increasing the property tax credit and other changes.
“The governor’s proposal is mere window dressing by comparison,” Harding said in his statement.
Those proposals might be left for budget negotiations, while Lamont is hoping for a vote soon on his call for a gas tax holiday.
“I think the need is now, I hope there’s not a need in a month,” Harding said. “So that would imply that this is a good time to sit down with the legislature.”
Lawmakers could raise the idea in an emergency certified bill, a process that would allow leaders to skip the committee process and rush a proposal to a vote.
Candelora said he thinks the Finance, Revenue and Bonding Committee should get a look at the bill, but he’s open to expediting the process.
“I think there’s time to get it through (the) Finance (Committee), but certainly it is something that, if there’s an emergency, we could have that conversation,” he said.
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