|Posted:||May 27, 2021 11:00 AM|
|From:||Senator Doug Mastriano|
|To:||All Senate members|
|Subject:||Gas Tax Holiday for Pennsylvanians|
|I will soon be introducing legislation to establish a gas tax holiday for Pennsylvanians struggling to pay for rising gas prices throughout our Commonwealth. This relief will be temporary for now and last for 6 months upon enactment.
Pennsylvania currently has the second highest state gas tax in the United States. Right now, the tax stands at 58 cents per gallon.
Our bill will establish a 26% tax cut of 15 cents per gallon for a period of 6 months.
As of this week, average gas prices in our state are now over $3 a gallon. That is a full $1 increase over the average from May 2020.
Rising costs at the pump have been driven by an increase in demand and uncertainty regarding future supply chains.
This summer, more drivers will hit the road to head back to in-person work at offices and partake in summer travel. Some analysts are projecting that gas prices could hit $4 a gallon by August.
These high gas prices are simply not affordable for Pennsylvanians already dealing with rising inflation in other parts of the economy. Relief is needed now.
Additionally, my bill will establish an alternative funding option to make up lost revenue from the tax cut to maintain roads and bridges. This funding will come in the form of a new one-time registration fee on plug-in hybrid and electric vehicles currently in use and any purchase of such vehicles over the next year. 28 other states currently require registration fees for these types of vehicles.
The registration fees will be as follows:
Electric Vehicles: $250
Hybrid electric vehicles: $175
The 6-month gas tax holiday will also serve as a useful pilot for a possible long-term phase-out of the PA gas tax.
Please join me in co-sponsoring this important and timely legislation.
Introduced as SB813