House Republican Press Release

May 15, 2007

Press Office: 860-240-8700

REP. HETHERINGTON: SUPPORTS GAS TAX HOLIDAY

“Suspends Gas Tax for Summer Months”

HARTFORD – State Rep. John Hetherington (R-New Canaan, Wilton) joined fellow House Republican leaders in calling for a Memorial Day to Labor Day moratorium on the state gasoline tax for the summer peak driving season to give motorists relief at the pumps. Given the state’s higher revenue projections released last week and increasing impact of gas prices on consumers, Connecticut should stop collecting the present 25 cents per gallon now levied for the summer driving season, said Rep. Hetherington.

It is estimated that the tax cuts would save drivers about $40 million per month, or a little more than $120 million for the duration of the summer driving period. Last week, the non-partisan Office of Fiscal Analysis revised revenue projections to show that Connecticut now has a surplus this year of $846 million, which would easily cover the lost revenue. The gas tax moratorium would not divert any funds from any transportation program. The Legislature has until June 6 to finalize the two-year budget.

“Average gasoline prices have increased more than 80 cents per gallon in recent months or more than 33 percent and people cannot afford it,” added Rep. Hetherington. “A gas tax holiday is the most effective way the Legislature can make a difference. Given the state's present fiscal health, with a current year budget surplus approaching $900 million, it is the right thing to do to provide some relief to the people we represent. This is a proposal that needs to be given serious consideration as we move forward in budget negotiations.”

“They result in higher prices for a wide variety of goods and services and dampen economic growth. If gas prices don’t come down soon, it could take months for the economy to recover and the people of Connecticut need relief at the pump now,” added Rep. Hetherington.

Connecticut motorists pay some of the highest gas prices in the country. Connecticut’s combined state and federal taxes of more than 55 cents per gallon are third highest in the country, behind only California and New York.