Shaban: GOP Passes Gas Tax Cap

Last week, the Connecticut General Assembly passed an emergency certified bill that will cap the gross receipts tax on gasoline for all gas sold at a wholesale price over $3 per gallon — the current wholesale price is $3.20 and rising. The flat 25 cents per gallon tax remains in place.

“The persistence of concerned legislators and the outspoken citizens of Connecticut that demanded this action should be commended,” said State Rep. John Shaban (R-135th). “This cap is long overdue—it’s something Republicans have pushed for years, and I am happy that my Democratic colleagues finally came around on the idea." 

Even with the cap, Connecticut motorists still pay more at the at the pump than nearly every other state. In addition to the 18.4 cents per gallon in federal taxes charged in all states, Connecticut charges a flat state excise tax of 25 cents per gallon, plus the gross receipts tax at 7.53 percent which currently adds about 25 cents per gallon. All in, our state hits the taxpayer at about 50 cents per gallon — far more than 23.5 cents per gallon in Massachusetts or 33 cents per gallon in Rhode Island."

Shaban, who represents , Redding and Easton, noted, however, that next summer the gross receipts tax rate is scheduled for an increase to 8.1 percent. The Republicans thus proposed an amendment to freeze the rate, but the majority Democrats defeated the measure. 

"Seems that we are giving relief with one hand, but are poised to take it all back with the other after the elections are over," Shaban said. "The good news is that we have made some progress. Now we must focus on preventing the increase scheduled for next summer."

Republicans offered an amendment that would also cap the percentage charged on the gross receipts tax. The amendment failed 94-53.