After three consecutive years of increases, the Connecticut diesel fuel tax rate is about to drop. Effective July 1, the diesel fuel tax rate in Connecticut will decrease by four-tenths of a cent from 54.9 cents to 54.5 cents, according to a document signed by Connecticut Commissioner of Revenue Services Kevin B. Sullivan.
Connecticut consistently claims a top spot for highest diesel fuel prices. The new tax rate is the first reduction in four years. On July 1, 2010, the diesel fuel tax rate went down 5.5 cents to 39.6 cents. From 2011 through 2013, the tax rate increased by 6.6, 5.0 and 3.7 cents, respectively. This year’s tax rate change is rather insignificant, comparatively.
In Connecticut, the commissioner is required to reassess the fuel tax rate every year before June 15. The formula used to calculate the new tax rate includes determining the average wholesale price per gallon from the previous 12 months using the Oil Price Information Service.
The new tax rate will remain in effect until July 1, 2015.
With a new tax rate comes changes to the International Fuel Tax Agreement report. Smaller tax rates may save truckers money at the pump, but could also mean more money owed after filing the IFTA report at the end of each quarter.
For the latest IFTA tax rates, click here.
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