Fuel Tax Holidays = Opportunity for Savings

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8 Apr 2022

Fuel Tax Holidays = Opportunity for Savings

States have taken efforts to provide fuel tax holidays for certain drivers. Efforts continue around the country to provide similar relief from high fuel costs for motorists and truck drivers. These are steps in the right direction, but will complicate IFTA filings in the future.

Lee Trans’ fuel tax experts can monitor these opportunities and make certain your tax filings are accurately submitted, allowing you to take full advantage of the savings available to you and your fleet and ensuring you are protected in the event of audit.

Call 800-569-1675 for more information.

Enacted fuel tax holidays

Maryland was the first state to take action on a fuel tax holiday.  On March 18, Maryland Governor Larry Hogan signed into law legislation to suspend collection of the state’s fuel tax, which are a substantial 36.1 cents for gasoline and 36.85 cents for diesel, for 30 days. The tax holiday took effect immediately and runs through April 16.  Governor Hogan has since indicated he may extend the tax holiday.

Georgia, Governor Brian Kemp also signed into law a fuel tax holiday for his state that began on March 18th and will end on May 31st.  Georgia collects a 29.1-cent gas tax and a 32.6-cent diesel tax.


Connecticut, Governor Ned Lamont signed a bill into law March 22 to give motorists a three-month holiday from paying the state’s 25-cent excise tax on gas. The law does not include the 41.1-cent excise tax on diesel.  The gas tax holiday began April 1 and runs through the end of the fiscal year – June 30.


Fuel tax holidays proposed but not enacted


Virginia Governor Glenn Youngkin has sent legislation to the General Assembly to suspend state fuel tax collection for three months. Virginia collects a 26.2-cent-per-gallon tax on gas and a 27-cent tax for diesel.


Florida state lawmakers have reached agreement on a gas tax holiday initially pursued by Governor Ron DeSantis.  The legislature approved a one-month gas tax holiday that would eliminate the collection of the 27-cent tax for the month of October. Governor DeSantis originally sought a six-month gas tax.


Not so fast – States Resisting the Idea of a Tax Holiday

Despite the trend nationally to pursue fuel tax relief for at least some consumers, the idea is not taking hold in some states.

Arizona Governor Doug Ducey said he prefers a long-term fix to a fuel tax holiday. The Republican governor said expanding energy production is a better solution.


Arkansas Governor Asa Hutchinson said he opposes a gas tax holiday. Instead, the GOP governor said relief from higher gas prices and inflation could warrant tapping into the state’s surplus.


Iowa’s statehouse cite potential financing delays in getting road work done for not taking action. Instead, House Speaker Pat Grassley, R-New Hartford, said the federal government should take the lead on addressing fuel prices.


Michigan Governor Gretchen Whitmer followed through on her veto threat of a bill to suspend the state’s 27-cent tax on gas and diesel for six months. Instead, the governor wants to address the state’s collection of sales tax on fuel purchases. Specifically, her plan is to suspend the state’s 6% sales tax on gas and diesel.


Massachusetts’ State Senate shot down a proposal to suspend fuel tax collections through Labor Day.


West Virginia Democratic legislators say they want a 30-day gas tax holiday. Majority GOP lawmakers are not pursuing any relief from fuel costs. Instead, relief efforts are focused on a possible $100 tax rebate.


IFTA Effect


Pressure at statehouses for fuel tax holidays that would include diesel has the attention of professional drivers. Truckers want to know what a tax break would mean for paying their fuel tax through the International Fuel Tax Agreement.


IFTA Executive Director Carmen Martorana recently stated that drivers wouldn’t have to pay state fuel tax if they are buying and burning the fuel in a state that is not collecting the tax.


Martorana pointed out that drivers who buy fuel in a state with a fuel tax exemption and drive in a state without an exemption would have to pay that tax out of pocket on the return.


He added that if a driver pays taxes on fuel in one state, but then drives in a state that has a tax holiday, they will get reimbursed through the IFTA filing process.


If you have questions or would like more information pertaining to these fuel tax holidays, please contact your Customer Service Representative.