GREENLEAF PROPOSES
TEMPORARY SUSPENSION OF STATE GAS TAX
HARRISBURG—Sen. Stewart J.
Greenleaf, R-Montgomery/Bucks, is sponsoring
legislation to suspend the state's 30-cent per gallon
gasoline tax for three months to provide consumers
with a break in the cost of operating their vehicles.
The senator said that the rising
cost of gasoline, which has spiked to $3.20 per gallon
in some areas of the commonwealth, is causing
residents financial difficulties. "Transportation is
a necessity for work and for making trips to the
grocery story and doctor. The cost of gasoline is
becoming more burdensome, especially for those on
tight budgets. The temporary suspension of the gas
tax in our state is intended to give people a chance
to catch up financially," Greenleaf said.
The price of gasoline has been
climbing steadily this year, but has risen more
precipitously recently in response to massive
hurricane damage to refineries and pipelines in the
Gulf Coast region of the United States. In some areas
of the state, it was reported that the price of a
gallon of unleaded gas jumped by 60 cents in one day
and increased another 20 cents the following day.
Suspending the state gasoline tax
for three months would result in lost revenue to the
state, but would reduce the cost of living for state
drivers, who would still be subject to paying federal
gasoline taxes of 18.4 cents per gallon. Taxes, both
state and federal, represent about 21 percent of the
cost of a gallon of gas.
The senator's legislation sets
the time of suspension of the tax at three months in
the hope that hurricane-related supply issues will be
resolved in that time and prices will stabilize by
then.
Contact: Paula Fogarty
717-787-6599