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States Mull Cutting Gas Taxes

Originally Published in Trailer Life Magazine

In order to reduce the impact of high fuel prices, governors have discussed reducing or
suspending state gasoline taxes in Connecticut, Maryland and South Carolina. New York
lawmakers agreed to cap the sales tax at 8 cents per gallon. North Carolina’s governor
wants to cap the gas tax, and Connecticut’s governor is open to a proposal to suspend the
state’s 25-cent-per-gallon tax for the summer. Georgia may suspend the gas tax, and other
states where the idea is being considered include Texas, Minnesota, Delaware, Nevada and
Idaho. On average, states add 28.1 cents to each gallon of gas from a combination of excise
taxes, business taxes, and state and local sales taxes. According to the American Petroleum
Institute, it varies from a low of 8 cents in Alaska to a high of 49.5 cents in New York.
The federal government adds 18.4 cents to each gallon.

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