Most of the state gas tax goes to PennDOT and the rest is split between municipalities, the state police, Pennsylvania Turnpike Commission, and other agencies
Pennsylvania lawmakers from both sides of the aisle are proposing temporarily suspending the state’s gas tax as residents face rising costs at the pump.
Pennsylvania has a 57.6-cent-per-gallon tax on gasoline and a 74.1-cent tax on diesel. On top of that, the federal government charges 18.4 cents for gasoline and 24.4 for diesel.
Most of the state gas tax goes to PennDOT and the rest is split between municipalities, the state police, Pennsylvania Turnpike Commission, and other agencies. The bulk of the money goes toward transportation and road projects.
According to data from the right-leaning Tax Foundation, the state’s gas tax is the fourth highest in the country. California leads the nation with a gas tax of 70.9 cents per gallon.
House Republicans this month unveiled their “Freedom Through Affordability” program at a Harrisburg press conference.
The GOP plan centers on a series of six-month tax holidays, including the total elimination of the state gas tax for half a year.
The package also proposes reducing the state’s personal income tax rate from 3.07 percent to 2.99 percent for six months and suspending the gross receipts tax on electricity and telecommunications.
“Our goal is simple: Make Pennsylvania a place where families can afford to live, work and build their future,” said State Rep. David Rowe, a Republican from Snyder County and chairman of the House Republican Policy Committee.
State Rep. Kristin Marcell, a Republican from Bucks County and vice chair of the House Republican Policy Committee, is co-sponsoring the utility tax suspension with Rep. Eric Davanzo, a Republican from Westmoreland County.
“This temporary tax holiday is a commonsense way to give them that break, save them some money and help make life just a little easier,” Marcell said.
State Rep. Joe Hogan and State Rep. K.C. Tomlinson, both Republicans from Bucks County, are co-sponsoring six-month sales tax holidays for car seats and baby products.
While the GOP seeks a six-month window, State Sen. Lisa Boscola, a Democrat from Northampton County, is planning a separate bill to suspend gas and diesel taxes for 60 days.
Boscola’s plan would use bonding to replace lost revenue by suspending the state’s gas tax.
“This ensures we can provide relief at the pump without disrupting funding for State Police or critical road and bridge projects,” Boscola said, noting that the Iran war is driving prices higher.
The push for relief comes as the left-leaning Institute on Taxation and Economic Policy estimates rising fuel prices could cost American drivers an additional $9.4 billion per month.
The South has seen the quickest gas price increases, while the Northeast has seen the lowest rise, according to the group.
Democratic Gov. Josh Shapiro has previously highlighted his administration’s focus on growing wages through economic development and a new tax credit for workers, while pushing for a $15 minimum wage to combat costs, according to FOX 43 in Harrisburg.
Hogan, who serves as deputy chair of the Policy Committee, announced the Republicans are holding the “Affordability Starts Here” tour beginning next week in Hanover.
The tour aims to gather input from residents on various costs, including childcare, Hogan said.
Lawmakers in California, Florida, and Utah have also considered similar gas tax holidays to fight increasing costs at the pump.
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