CT Gas Tax Cut, Sales Tax Holiday Proposed: Here's What To Know

CONNECTICUT — Gov. Ned Lamont and legislative leaders discussed a gas tax holiday through June 30 with the aim to save drivers 25 cents per gallon at the pump. He also proposed a sales tax holiday for one week in April on clothing.

“There was strong consensus that now is the time to provide immediate relief to the people of Connecticut broadly in terms of inflationary pressures,” Lamont said during a news conference.

Lamont is aiming to do the cut on a bipartisan basis and as quickly as possible. Republican and Democratic legislative leaders will take the proposal back to their caucuses. Republican legislative leaders recommended their own version of a gas tax holiday last week.

The gas tax holiday would cost the state about $90 million. The state can afford it, and the cut would be allowed under federal budget rules. Lamont also said it would be good sense for the federal government to also provide gas tax relief.

Lamont is looking into ways to ensure the gas tax cut is seen at the pump for consumers.

“The market will determine, everybody knows you’re getting a 25-cent cut,” he said. "I think a lot of the consumers will be out there looking for a 25-cent tax cut.”

Anyone who is looking to use the tax cut to enrich profits will likely hear from the state Attorney General office, Lamont said.

State legislators are going into session Wednesday, but it will likely take longer than that for briefings and other steps, Lamont Chief of Staff Paul Mounds said.

Lamont also proposed a tax-free week for clothing in April in an effort to save families on inflation costs. It would be in addition to the tax holiday week that typically occurs in August.

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