CT Gas Tax: 5 Things To Know

CONNECTICUT — Politicians from both sides of the aisle are exploring possible federal and state gas tax cuts in order to bring the overall cost of gasoline down.

The average cost of a gallon of regular gas in Connecticut broke a record Wednesday and again Thursday, according to AAA. The average statewide cost was $4.475 a gallon as of Thursday morning.

Here are five things to know about Connecticut's gas tax:

What are politicians saying about the current tax?

Gov. Ned Lamont said he will work with the state legislature to see if a gas tax holiday or rebate program is possible.

Republican gubernatorial candidate Bob Stefanowski called for the state to suspend gas taxes until 2023.

Republican legislators proposed suspending the gross receipts tax on gasoline until at least July 1.

U.S. Sen. Richard Blumenthal called for the federal government to suspend its gas tax as well.

What are the rates for motor vehicle fuel taxes?

The combined Connecticut tax rate for gasoline was 35.75 cents per gallon as of July 2021, according to the American Petroleum Institute.

The motor vehicle fuels tax (aka the gas tax) is 25 cents per gallon on gasoline, according to the state Office of Legislative Research.

There is also a wholesale tax on gasoline, which is known as the petroleum products gross earnings tax. The current rate is 8.1 percent and is limited to the first $3 per gallon.

The rate on diesel has two components; one is a flat 29 cents per gallon and the other is a variable rate that changes every year. The fiscal year 2021 variable rate was 15.6 cents.

How much money do taxes on motor vehicle fuels raise for the state?

Connecticut raised $318.5 million in petroleum products gross earnings tax and $497.9 million from the motor vehicle fuels tax in fiscal year 2019.

How does Connecticut compare to the rest of the U.S. for fuel taxes?

Connecticut has the 17th highest total state taxes on gasoline and 12th highest for total taxes on diesel as of Jan. 1, 2022, according to the American Petroleum Institute.

The U.S. total gas tax average (volume weighted) was 57.09 cents per gallon.

What are revenue projections for future years?

The latest state consensus revenue projection report estimates that the state will bring in $480.3 million in motor vehicle fuels tax for fiscal year 2022 (the current fiscal year) and nearly $495 million for fiscal year 2023.

However, those projections were made in January, before the surge in gas prices