Governor supports federal gas tax holiday

Friday, March 11, 2022 at 6:04 AM

By Ky Gov Andy Beshear @Wikicountry

A federal gas tax holiday is a tool to reduce costs for our Kentucky families

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This week, Gov. Beshear joined other Governors to send a letter to leaders in Washington to let them know he supports federal legislation to address rising gas prices by suspending the federal gas tax until the end of the year. As Congress looks to relieve Americans of the financial stress caused by increased gas prices amid international crises and rising inflation, it is clear that legislative action is needed, the Governor said.

According to the American Automobile Association, the national average gas price in the United States is $4.17, up more than $1 from 2021. The Gas Prices Relief Act, as introduced in the U.S. House and Senate, would alleviate the consumer cost of rising gas prices while protecting the federal government’s capacity to make infrastructure investments. The legislation would help Kentuckians save at the pump, which translates into dollars back in consumers’ pockets for groceries, child care, rent and more. And the legislation ensures the Highway Trust Fund stays solvent.

“We know it is possible to invest in infrastructure while also providing immediate relief in times of temporary – but still great – difficulty,” Gov. Beshear said. “At a time when people are directly impacted by rising prices on everyday goods, a federal gas tax holiday is a tool to reduce costs for our Kentucky families.”

This is only the latest step the Governor is taking to help provide relief to families. He recently signed an executive order to stop vehicle property taxes from increasing for the next two years.

“Kentuckians should not have to pay more because the impacts of COVID have caused used vehicle prices to soar,” Gov. Beshear said.

The Governor is also working with Rep. Angie Hatton of Whitesburg to propose temporarily lowering the state sales tax rate from 6% to 5% over the next fiscal year. This would help provide families needed relief from higher prices by providing approximately $1.2 billion in tax relief.