States Enact Gas Tax Holidays to Provide Taxpayer Relief

In attempts provide relief to taxpayers at the pump, there is a growing trend in 2022 of states passing temporary gas tax holidays to combat inflation and surging fuel prices.

The Maryland Comptroller called on the General Assembly of Maryland and the Governor to institute a gas tax holiday. The legislature quickly passed a 30-day gas tax holiday with S.B. 1010/H.B. 1486. The motor fuel tax-free period began March 18, 2022 and ends on April 16, 2022. Qualifying fuels are gasoline, other than aviation gasoline; special fuels other than turbine fuel; and the gasoline equivalent gallon of clean burning fuels, excluding electricity. Get more details from the Maryland Comptroller.

Connecticut suspended its 25 cents per gallon excise tax on gasoline from April 1, 2022, to June 30, 2022 with emergency legislation H.B. 5501. Each retailer is required to reduce the per-gallon price of fuels or gasohol sold in an amount equal to the amount of the reduction. The legislation suspends fares on public buses statewide during that same period.

With the passage of H.B. 304, Georgia suspended collection of motor fuel excise tax from March 18, 2022 through May 31, 2022. All fuels subject to Georgia motor fuel excise tax imposed including, but not limited to, gasoline, clear diesel, aviation gasoline, liquid propane gas, gasohol, ethanol, liquified natural gas, and compressed natural gas, are eligible for the suspension of tax. Find more information on the Georgia Department of Revenue website.

Numerous other states have proposed legislation, including but not limited to:

  • Delaware S.B. 254: would suspend state taxes on motor fuel in for 30 days.
  • Florida H.B. 7071: pending governor approval, the bill would suspend the state’s gas tax for the entire month of October 2022 (the slowest month for tourism). The Florida Governor had previously called for a five-month gas tax holiday.
  • Illinois S.B. 1150: would suspend the state’s portion of the gas tax increase for six months.
  • Massachusetts S.D. 3053: would create a refundable credit for motor vehicle operating costs for one year January 1, 2022 to January 1, 2023.
  • Massachusetts S.D. 3052: would suspend collection of the state’s excise tax on gasoline effective immediately through September 5, 2022.
  • Michigan H.B. 5570: vetoed by the Governor but would have suspended the state’s gas tax April 1 through September 30, 2022.
  • Minnesota H.F. 4060: would suspend tax on motor fuels from May 29, 2022 to September 6, 2022 (Memorial Day through Labor Day).
  • Mississippi H.B. 531: would suspend the state’s fuel excise tax for six months from the law’s enactment, which would come into effect July 1.
  • Missouri H.B. 2801: would create a one-time six-month tax holiday on motor fuel sales
  • Rhode Island S.B. 2845: would suspend the tax on fuel or manufactured biodiesel fuel sold or used from April 1, 2022 to June 30, 2022.
  • New York S.B. 8526: would establish a temporary fuel tax holiday for one year and would begin 14 days after the bill’s effective date.
  • New York FY 2023 budget: would suspend the state sales tax imposed on fuel, the motor fuel tax, and the metropolitan commuter transportation district sales tax imposed on gasoline and highway diesel from June through December 2022.
  • South Carolina H.B. 5103: would suspend the user fee on gasoline and diesel fuel for one year.
  • Virginia: Governor sent legislation to the General Assembly to suspend the Motor Vehicle Fuels tax for three months, May, June, and July, 2022 and phase it back in slowly in August and September 2022.
Posted on April 12, 2022