Update On State Gas Tax Holiday Proposals
Discussion of a gas tax suspension continues in Harrisburg as other states have enacted measures to provide breaks to motorists.
On Friday, a thirty day gas tax moratorium took effect in Maryland.
In Georgia, the Governor has signed into law a suspension of the collection of that state’s motor fuel taxes until the end of May.
In Michigan, the Governor is reportedly in discussion with her legislature to come to an agreement for a tax suspension.
Pennsylvania State Senate President Jake Corman has proposed a 50% state gas tax reduction until the end of the year.
As part of his plan, $500 million of federal COVID funds would be transferred to the Motor License Fund to make up the gap that would be caused by the tax reduction.
In the past week, Senator Corman has begun running commercials focusing on gas prices as part of his Republican Gubernatorial campaign.
Although Governor Wolf had signed a letter with other Governors asking Congress to suspend the federal motor fuel tax, he reportedly is less enthusiastic of doing the same on the state level.
As of this writing, a bill has not been introduced in Pennsylvania. However, neither the House and Senate have been in session.
The House was scheduled to return to town this week, but has moved its reconvening the week of March 28. The Senate plans to return the week of March 28 as well.
PPA continues to educate key policy makers as to the unintended consequences in which a gas tax suspension could result. Several other statewide business groups are engaged in similar activity.