Connecticut diesel fuel tax frozen for one year

From CT Insider.

Trucks and other diesel fuel vehicles will be spared a scheduled 12-cents-per-gallon hike in the base rate of Connecticut’s 49.2-cent diesel tax for at least one year, as part of a little known section in the new state budget. …

The variable rate gets calculated each year by the state Department of Revenue Services. On July 1, 2022, the diesel tax increased 9.1 cents from 40.1 cents per gallon. Revenue goes into the state’s Special Transportation Fund for road and highway projects. State Sen. Cathy Osten, D-Sprague, who is co-chairwoman of the Appropriations Committee, said Wednesday that she wasn’t certain how the tax freeze got put into the budget, but it means a savings of about $37 million over the next year for the trucking industry.

Read the full article at the CT Insider.

From CT News Junkie.

A scheduled increase in Connecticut’s tax on diesel fuel did not go into effect this month as a result of a provision within the state budget, which halted this year’s annual adjustment of the tax.

The state’s diesel tax is set through the combination of two elements: a flat, 29-cent rate and a variable rate calculated based on the previous year’s wholesale cost of diesel. Last year’s annual adjustment caused the diesel tax to increase from 40.1 cents per gallon to 49.2 cents.

That is where it will stay for this year, at least, due to the two-year state budget, which was passed on bipartisan votes of the state legislature in June and went into effect last week. The budget included a little-discussed provision that froze the variable rate at last year’s level.

In a press release, legislative Democrats estimated that the waived adjustment would save Connecticut consumers more than $37 million.

Read the full article at CT News Junkie.