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June 13, 2008

Senator Debicella Helps Pass Gas Tax Relief Legislation

Senator Dan Debicella (R-21) today helped secure legislative passage of initiatives designed to take away some of the pain suffered by Connecticut drivers filling up at the state’s gasoline pumps.

Senator Debicella voted during Wednesday’s special legislative session to repeal the scheduled increase in the state’s Petroleum Gross Receipts Tax. Without today’s vote, the state tax on the wholesale price of petroleum products would have increased from 7.0%to 7.5% on July 1st.

“Raising gas taxes right now would be insane,” said Senator Debicella, “but we need to do more than just stop gas taxes from rising—we need to lower them.”

Senator Debicella voted in favor of legislation to permit gas stations to offer cash discounts. Currently, franchise agreements prevent most Connecticut gas stations from charging different prices for cash and credit card customers. Industry sources estimated that cash discounts could provide an extra ten cents per gallon in relief for those paying cash at the pump.

However, Senator Debicella offered several proposals which would have actually lowered state taxes on gasoline. All his proposals were defeated on a party-line vote.

“I am disappointed that the Democrats are steadfast in their refusal to take meaningful action to provide long-term gas-tax relief,” said Senator Debicella.

Senator Debicella’s proposals included lowering the gas tax by an additional 10 cents per gallon for the summer, permanently lowering the gross receipts tax from 7% to 5%, and capping other future automatic tax increases.

“We currently have $94 million in surplus because of the gas tax, and we should be returning that to the people of Connecticut,” said Senator Debicella. “My proposals would have taken an additional 10-20 cents off a gallon of gas in Connecticut.”

Senator Debicella said he would continue fighting for additional gas tax relief, but that “we have at last taken a first step toward providing Connecticut residents relief at the gas pumps,” said Senator Debicella.

Copyright © 2008, Connecticut Senate Republicans - Some video on this web site provided courtesy of CT-N