TAX FILE: Lawmakers pump out fuel tax bills

June 1, 2006
Rising fuel prices have prompted a flurry of bills relating to fuel taxes. Bipartisan leaders in New York said on May 9 that they were close to capping or replacing the sales tax on fuels sold there. In contrast, single-party bills to suspend fuel-related taxes appeared headed nowhere. In late April, five Democratic senators proposed a 60-day suspension of federal highway fuel taxes, with the revenue

Rising fuel prices have prompted a flurry of bills relating to fuel taxes. Bipartisan leaders in New York said on May 9 that they were close to capping or replacing the sales tax on fuels sold there.

In contrast, single-party bills to suspend fuel-related taxes appeared headed nowhere. In late April, five Democratic senators proposed a 60-day suspension of federal highway fuel taxes, with the revenue loss to be offset by higher taxes on oil companies. Republicans in Illinois proposed a four-month holiday on that state's 6.25% sales tax on highway fuels. Neither of these bills received a warm initial welcome from the respective majority party involved.

Going the other way, a bill moved forward in the Minnesota legislature to raise highway fuel taxes by 3¢/gal. on July 1 and a further 3¢ a year later. All of the money would go for transportation spending.

About the Author

KEN SIMONSON

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