Politics & Government

State Legislators Approve Cap on Gas Tax

The new legislation will put a cap on gross receipts tax on gas when prices reach $3 per gallon, according to BusinessWeek.

The General Assembly unanimously passed legislation on Wednesday that will put a cap on gross receipts tax on gas when prices reach $3 per gallon, according to BusinessWeek.

As a result, the current price of regular unleaded would be reduced by 1.5 cents based on the current wholesale price of gas in New Haven, which is $3.20 per gallon. The legislation also seeks to protect consumers from alleged price gouging and profiteering.

“We know that people are hurting as our economy rebounds, and that ever-increasing gas prices aren’t helping," State Senator Carlo Leone (D-Stamford) said in a statement released Wednesday. "Rampant speculation in the gasoline markets continues to send prices higher and higher. At the state level, our options are limited, but in today’s bill we are doing everything we can to dampen this increase in gas prices, and keep it from stalling our still fragile economic recovery."

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Gas prices in Connecticut with the average price of gas hitting $4.04 a gallon, according to the tracking website GasBuddy.com. The national average is $3.86.


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