With the typical commercial truck consuming diesel fuel by the tens of thousands of gallons in the average year, it comes as little surprise that fuel is motor carriers' single largest operating expense. Indeed, it's estimated that around 40% of what they spend on day-to-day business activities goes toward the cost of fuel. But with prices at the pump reaching record highs — and showing virtually no signs of slowing down — trucking companies may be devoting an even larger percentage of their income to fuel.
However, several states have implemented tax holidays to help lower the cost of fuel for consumers and business owners. Here is a list of those states:
On March 18, Maryland became the first state in the country to declare a gas tax holiday for all road users. While the suspension has since been lifted, the 30-day moratorium reduced the price for unleaded regular and diesel fuel by 36 cents and nearly 39 cents per gallon, respectively, according to Maryland Matters.
As reported by NBC News affiliate WJAR, Connecticut Governor Ned Lamont signed legislation on April 1 that suspends taxes on fuel throughout the state. The move reduces the price for fuel by 25 cents per gallon.
"You don't want to do something that doesn't make a difference," Lamont said at the time. "Gas tax holiday is great, but if it stays in the pocket of the middleman, that doesn't make a difference."
The moratorium is poised to expire after June 30, but it's possible that it may be extended.
As part of what is believed to be the largest tax relief package in the state's history, Floridians will see a suspension of gas taxes for a month, starting on Oct 1 and lasting through Halloween, according to a press release from Governor Ron DeSantis' office. Throughout this period, operators will spend 25 cents less per gallon.
Similar to Connecticut, the gas tax could be lengthened if Gov. DeSantis and state lawmakers deem it to be appropriate.
Originally instituted on March 18, the gas tax holiday remains in place in Georgia. Governor Brian Kemp issued an executive order on May 26 to extend the suspension of excise taxes on all fuel sales through July 14. The moratorium reduces the cost of diesel by 32 cents and unleaded gasoline by 29 cents.
5. New York
New York is the latest state to suspend taxes on fuel. Governor Kathy Hochul made the policy for the Empire State official on June 1, which her office says will lower the cost of fuel by around 16 cents per gallon. It's expected to remain in effect for the rest of 2022.
"By suspending certain fuel taxes for the next seven months, New York is providing some $609 million in direct relief to New Yorkers — a critical lifeline for those who need it most."
It's estimated that 11% of the cost for diesel and 12% for regular gasoline stems from taxes, according to the Energy Information Administration.
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