Governor Proposes 5-Month Holiday Tax Relief To Fight Inflation

TALLAHASSEE, FL — Gov. Ron DeSantis wants Floridians to have gas relief, and he's not talking about the kind that can be remedied with Gas-X. He's proposing that the 2021 Legislature consider a bill that will give Floridians more than $1 billion in gas tax relief at the pumps.

He's floating the idea of a five-month gas tax holiday that will save the average Florida family up to $200.

“Gas prices have been rising due to inflationary pressures from bad federal policies, so we here in Florida need to step up and provide relief to our citizens,” said DeSantis during a news conference earlier this week in Daytona Beach. “Today, I am proposing that during session, the Florida Legislature provide more than $1 billion in gas tax relief for Florida families. This will have a positive impact on millions of Floridians.”

Florida Department of Transportation Secretary Kevin J. Thibault applauded the Republican governor's announcement.

“Florida’s sound fiscal policies allow the state to pass relief along to consumers who continue to suffer from the impact of inflation, and we will continue to do everything we can to alleviate the burden on all Florida families," he said.

Joining DeSantis during the announcement was Chris Gheysens, president and CEO of Wawa Inc.

“Given recent cost increases and supply chain challenges, this initiative will have a positive impact on Florida families," he said.

This gas tax relief proposal is in addition to other initiatives DeSantis' has announced over the past few months to fight the rising inflation that is plaguing the country.

The U.S. Bureau of Labor Statistics has reported an increase in the cost of products and services across the spectrum in recent months. It's impacted the cost of rental housing, new and used cars, energy bills and the cost of food.

The Consumer Price Index for All Urban Consumers increased 6.2 percent from October 2020 to October 2021, the largest 12-month increase since November 1990. Prices for all items except food and energy, rose 4.6 percent over the last 12 months, the largest 12-month increase since the period ending August 1991. Energy prices rose 30 percent over the last 12 months, and the food index increased 5.3 percent.

Prices for food prepared at home rose 5.4 percent over the past 12 months six major grocery store food group indexes. The price of eating out rose 5.3 percent over the last year.

Additionally, all the major energy indexes increased sharply over the last 12 months, according to the Bureau of Labor Statistics.

Gasoline prices rose 49.6 percent over the last year, and are now at their highest level since September 2014.

Fuel oil prices rose 59.1 percent, natural gas prices rose 28.1 percent and electricity prices rose 6.5 percent over the past 12 months.

The news is equally bleak for those in search of a vehicle. The price of used cars and trucks rose 26.4 percent and new vehicles 9.8 percent, the largest 12-month increase since the period ending May 1975.

DeSantis said he has made attempts over the past few months to fight the rising inflation rate including sending out a blanket invitation to shipping companies to use Florida ports to relieve the current U.S. supply chain crisis.