Minnesota + Wisconsin Governors Push For A Gas Tax Holiday
A growing group of largely upper Midwest Governors have banded together to push for a federal Gas Tax Holiday as a means to the record prices consumers are seeing at the pumps. In addition, some are investigating offering an additional break from the individual state gas tax as well.
Six governors - including Minnesota Governor Tim Walz and Wisconsin Governor Tony Evers - have signed a letter asking "congressional leaders....to drop the 18-cent federal gas tax until the end of the year". According to details shared in an article in the Superior Telegram [paywall], the letter asks the elected officials to "pull....federal general funds to replace the lost revenue".
The effort comes as drivers across the country are facing the highest average prices ever recorded. While the price of gas per gallon has been rising over the last year, it was driven even higher as the United States banned Russian oil imports. World and economic forecasts don't anticipate any immediate change from that situation with all things remaining the same.
With their combined push, the governors feel that a break for consumers from the federal gas tax would help to ease the sting of those record gas prices. In addition to Walz and Evers from Minnesota and Wisconsin, Michigan Governor Gretchen Whitmer, Colorado Governor Jared Polis, New Mexico Governor Michelle Lujan Grisham, and Pennsylvania Governor Tom Wolf have signed on with their support.
In addition to the federal Gas Tax Holiday, Minnesota Governor Tim Walz is also backing an effort to curb the state gas tax as well"
"Walz told reporters at the Capitol that he was open to the state gas tax holiday in addition to the federal proposal as long as the state's fund for roads and bridges is backfilled."
Currently, a bill that would sunset that state gas tax is in the Minnesota Legislature. However, it has not come up for a hearing or a vote yet at this time. If approved that effort could bring added relief to drivers as we head into the busy summer driving season.
If a state gas tax holiday were to pass, those savings could really start to add up. In Minnesota, the state gas tax rate currently sits at 28.5 cents per gallon. Meanwhile, Wisconsin's state gas tax rate is currently 30.9 cents per gallon; additionally, the state also collects 2-cents more for a "petroleum clean up program" - which adds up to 33 cents per gallon at Wisconsin pumps.
Those state numbers, combined with federal tax numbers can really start to add up. Doing the math, customers at Minnesota gas pumps pay 46.9 cents per gallon in taxes. In Wisconsin, that number is 51.4 cents per gallon.