Gas Tax Relief Approved: Here's What It Means For CT Residents

CONNECTICUT — The Connecticut legislature unanimously a bill that will suspend the 25-cent state excise gas tax. Legislators also approved an additional tax-free week for clothing purchases and free bus service.

The bill now heads to Gov. Ned Lamont's desk, who worked with legislators to craft the tax proposal.

The gas tax suspension will last from April 1 through June 30. It will cost the state about $90 million.

"This is all about delivering much-needed relief to Connecticut drivers and residents,” said Rep. Sean Scanlon (D-Branford), chair of the Finance, Revenue and Bonding Committee.

Legislators picked April 1 because it will allow gas stations to cycle through the fuel they already bought and paid taxes on, Scanlon said.

Explainer: Here Is How CT Gas Tax Works

The bill requires gas stations to pass the tax savings on to consumers, which will be enforced by the state Attorney General and Department of Consumer Protection. In reality, much of that enforcement will happen through the market, as consumers would shun gas stations that are more expensive.

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Taxes on diesel fuel won’t be suspended.

“We need to be very fiscally prudent with what we’re doing here,” Scanlon said. "We have a [Special Transportation Fund] surplus for the first time in decades, and we don’t want to get rid of all that.”

The bill also includes a provision for a tax-free week for clothing, starting April 10. Purchases of clothing and footwear under $100 would be tax-free. The proposal would cost the state about $3 million, with the money coming out of the general fund surplus.

Another part of the bill would offer free public bus service through June 30. It would be funded through the state's share of the federal American Rescue Plan Act.

“These are people who didn’t telework, they don't work from home, they’re out there every single day working,” Scanlon said.