With gas prices skyrocketing after the Russian invasion of Ukraine and President Joe Biden's announcement that the United States will ban Russian oil imports, Massachusetts Republicans want to temporarily drop the state's 24-cent gas tax to provide some relief for local drivers.
"We're looking at a suspension of the gas tax for a short, defined period and hopefully have some triggers in there so that we'll know when it could conclude or how long it's going to last," Rep. Kimberly Ferguson (R-Holden) told GBH News.
Ferguson said legislation from the House GOP Caucus to suspend the gas tax would be filed Tuesday or Wednesday. The House GOP's measure would not affect the additional $0.026 charged per gallon of gas for underground fuel tank cleanup or the $0.183 cent federal tax. Ferguson said the GOP lawmakers are looking for a two-month suspension of the gas tax.
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AAA, the automotive service organization, reported Monday that gas prices in Massachusetts averaged $4.13 per gallon, a new record.
Ferguson said constituents have reached out to lawmakers asking for some relief at the pumps by suspending the gas tax.
"Every time they go, the price has gone up again, and it's not up a penny or two, it's 8 cents, 12 cents, 30 cents from last week," Ferguson said.
The state brings in on average over $65 million per month from the gas tax, meaning a two month suspension would cost the state around $130 million in lost revenue.
Gov. Charlie Baker is not on board with his party's plan to ditch gas taxes. Baker would prefer to use excess state revenue to provide lower, middle and upper class residents tax credits and other breaks in their annual filings. Baker approved of Biden's move to stop Russian oil imports, but stopped short of backing the House Republican plan.
"This is the right move for the Biden Administration to further punish Russia for this atrocious invasion, but inflation and rising prices are real concerns for residents. That’s in part why I filed a series of tax cuts to help Massachusetts residents. Let’s pass these tax cuts now and deliver real savings to the people of Massachusetts," Baker wrote on Twitter Tuesday.
Baker's proposed broad based tax cuts, worth an estimated $700 million, are pending before the Legislature.