BOSTON — Gov. Maura Healey said on Tuesday that she intends to file legislation to suspend the state's 24-cent-per-gallon gasoline and diesel tax for two months amid soaring prices, the pending home heating season, and persistent calls from Republican challenger Mike Minogue to provide a gas-tax holiday to Bay State drivers.
"This is a moment where we are in a crisis," she declared. "We need action. This is temporary action, temporary relief, for the people of Massachusetts."
Healey blamed the rising costs on President Donald Trump's War in Iran and acknowledged that her decision was a change in course after she previously said she was not necessarily in favor of axing the tax that primarily supports road construction and maintenance.
"As you may know, I have had some skepticism about the impact of the gas tax suspension in the past," she said during a Tuesday morning news conference. "My concern was that people wouldn't actually see the benefit of a gas tax suspension. But our team worked hard to craft legislation that tackles that concern head-on. It makes sure that those savings will actually be passed on to drivers, to customers. That is important to me."
She said funding to offset the tax revenue loss from the gas-tax suspension — estimated at $120 million for the two months — will come from surplus and expected Fair-Share funding or the so-called MA Millionaire's Tax.
"So this will not cause us any fiscal harm and will not take away funding that's going toward transportation or important infrastructure projects," she said.
Minogue has pressed Healey on the gas tax as prices have soared above $4 per gallon at most Bay State stations in recent weeks.
"A gas tax holiday is a common-sense solution for hard-working Massachusetts families. The Legislature must put the people first and get this done," Minogue said earlier this week. "As governor, I'll do the audit and free up millions lost to waste, fraud, and abuse, allowing us to provide relief to Massachusetts families."
Healey said the gas-tax suspension is in line with fare reductions in the MBTA and Commuter Rail since the summer, and that she is working on a proposal to help with rising home heating oil costs this winter, with oil a predominant form of heat supply in New England compared with the rest of the country.
"Home heating oil prices are going to go through the roof," Healey said. "That's what the oil companies are telling their customers. It's a terrible situation."
"It doesn't need to be this way in our country," she added. "But because we have a president who has chosen to take us to war, who has chosen to raise costs on everything between his tariffs, his failure to get inflation under control — look at interest rates right now — and now gas and oil."
Healey pushed back on questions about whether the two-month suspension was akin to a campaign stunt with the election six weeks away.
"My two-month suspension does give time for common sense to prevail," she said. "End this war. And help the American people. We can't afford this."
She said that if the legislature passes, the tax suspension will begin seven days later and last for the next two months.
"I can't control inflation. I can't control interest rates. I can't control the price of gas. But this is something I can. We can say: 'Here is a two-month suspension (of the tax).' It's not going to do everything. But it's going to save you something."
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