Now state legislatures are looking to enact their own gas tax holidays. For example, Maryland enacted HB 1486 waiving the state’s 36-cent per gallon motor fuel tax for 30 days. Connecticut is preparing to vote on a three-month suspension of the state’s 25-cent per gallon excise tax. Florida is exploring a one-month fuel tax holiday, to be held in October 2022. Georgia enacted HB 304 to temporarily suspend the state’s 29-cent per gallon excise tax on motor fuel sales through May 31, 2022. In Virginia, Governor Youngkin announced that he would send a bill to the General Assembly in the upcoming special session to suspend Virginia’s gas tax for 3 months.
If passed, these federal bills will establish a terrible precedent that a gas tax holiday is the answer during times of economic distress when there is little consumer benefit, will weaken the user-pays system, and the Highway Trust Fund (which pays for our road and bridge investments) will be reduced by almost $20 billion.