Rell Backs

Gas Tax Cap

HARTFORD (AP) —  Governor M. Jodi Rell has said it makes sense to cap the wholesale price of gasoline that’s being taxed by the state.

“If it will help people by saving money at the pumps, I’m all for it,” Rell said Thursday, the Journal-Inquirer of Manchester reported.

This week, Rell’s fellow Republicans called for another special legislative session to deal with high gas prices. They want to cap the wholesale price of gasoline that is taxed by the state at $3.40 per gallon. Without a cap, they said motorists will continue to pay more in taxes as the wholesale price of gasoline increases.

But Democrats, who control the General Assembly, were unenthusiastic about the Republican plan, calling it a gimmick. They also questioned whether the state can afford the loss in revenue.

Lawmakers met last month and voted to scrap a planned 0.5 percent increase in the state’s Petroleum Products Gross Receipts Tax. The rate was supposed to have jumped to 7.5 percent on July 1 and was predicted to raise gasoline prices by approximately five cents per gallon.

The General Assembly also passed legislation aimed at making it easier for gas stations to offer discounts to customers who pay cash.

Lawmakers are next scheduled to return to the state Capitol in January for the regular legislative session, unless a special session is called.

Besides the gross receipts tax, Connecticut imposes a 25-cent-per-gallon excise tax on gas. As of July 4, the average price for a gallon of regular unleaded gasoline in Connecticut was $4.37. The national average is $4.10.