A bill in the Wisconsin Legislature is intended to give drivers in the state a slight reprieve from high fuel prices.

The Joint Committee on Finance will review a two-part bill that would stop the annual indexing of motor fuels and institute at least a 30-day fuel tax holiday.

Sponsored by Rep. Stephen Nass, R-Whitewater, the effort would eliminate 29.9 cents per gallon from the state’s gasoline and diesel tax for 30 days. It would not suspend the 3-cent-per-gallon oil inspection fee.

Gov. Jim Doyle would also have the option to extend the holiday another 30 days.

After the tax holiday, the per-gallon tax would be phased back into effect. The tax rate would increase 5 cents per gallon for the first three days. Four days later, the rate would climb another 5 cents. The rate would continue to grow by a nickel every four days until it returns to the pre-holiday rate.

The measure – AB797 – doesn’t address the status of the International Fuel Tax Agreement requirements for miles driven in Wisconsin. So, even if the tax is suspended at the pump, truckers could end up owing it at the end of the quarter when they file their IFTA paperwork and payments.

Nass said in a released statement the tax break could save consumers $178 million over the course of two months.

The second part of the bill would end automatic increases in the state’s fuel tax and require lawmakers to annually vote on any tax changes.

The automatic increase in the tax has been adjusted for inflation on April 1 each year since 1985. This year, the tax increased 0.8 cents a gallon.

With the new tax rate, Wisconsin claims the highest average fuel tax in the nation. Revenue from the tax, which is almost 14 cents per gallon higher than the national average, is primarily used to build roads.

Nass said dropping the automatic indexing would save consumers more than $38 million in the next two years.

Doyle has said he wants to stay away from any effort that would cut into the state’s ability to generate revenue for roads.

As an alternative, the governor is pushing to repeal the state’s minimum markup requirement for diesel and gasoline. The rule has been in place since the 1930s.

Another measure in the Joint Committee on Finance would do what Doyle wants.

AB505, sponsored by Rep. Jeffrey Wood, R-Chippewa Falls, would strike provisions in state law requiring markups of 3 percent for wholesalers and 6 percent for retailers.

State law prohibits the sale of fuel at below cost, which is designed to prevent businesses from selling at a loss in order to drive out competitors.

If signed into law, the governor’s office said fuel prices would drop about 9 cents “virtually overnight.”