Repeal The State Gas Tax

Daniel Simmons, Natural Resources Task Force Director for the American Legislative Exchange Council joined me this morning to talk about a temporary repeal of the state gas tax.

ALEC Urges State Lawmakers to Ax the Gas Tax
Temporary Repeal of State Gas Taxes Would Provide Much Needed Relief


Washington, DC) -- The American Legislative Exchange Council (ALEC) today urged state lawmakers to give drivers relief at the pumps by temporarily repealing state gas taxes as part of the response to the fuel supply disruptions caused by Hurricane Katrina.

“Hurricane Katrina has caused major supply disruptions and states must take all appropriate actions to lower fuel costs for families in need,” said Georgia State Representative Earl Ehrhart, National Chairman of the American Legislative Exchange Council. “The average state levies a 21.4 cent tax on each gallon of gasoline. Temporarily repealing these taxes will ease the impact of skyrocketing prices that will inevitably occur due to the break in the supply chain.”

Even before the destruction and disruptions wrought by Hurricane Katrina, the average price of a gallon of gasoline had been increasing. Fuel prices have increased because of increased worldwide demand for oil, supply disruptions, and continued instability in the Middle East, but government can help lessen the impact of the hurricane by reducing fuel taxes and regulation during a natural disaster.

“Federal and state taxes on each gallon of gasoline average 39.8 cents per gallon,” said Representative Ehrhart. “This is a commonsense approach that provides relief for American families seeking to rebuild their homes and communities after a disaster. I call upon the states to help reduce gas prices in the short term by cutting fuel taxes for the month of September. We hope that Congress follows suit.”

ALEC has drafted model legislation that provides tax relief at the pump. The model bill has been sent to the state legislators in the Gulf States for introduction during emergency or special sessions that may take place in the aftermath of Hurricane Katrina. Governors can use the language for executive orders. (Copies of the model legislation can be obtained by emailing Sharrison@alec.org.)