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West Virginia governor pursues fuel tax cap

Gov. Joe Manchin has vowed to freeze motor fuel taxes for one year in West Virginia. It is the latest of many measures being bantered about in statehouses across the country to ease the effects of record-high fuel prices.

Lara Ramsburg, a spokeswoman for the governor, said Manchin plans to sign an executive order to stop the scheduled increase on gasoline and diesel fuel, which was expected to take effect on Jan. 1.

The tax is based on the average wholesale price of fuel between July 1 and Oct. 31. It was expected to increase by at least 1.5 cents per gallon.

West Virginia isn’t alone in its attempt to combat higher prices at the pump brought on by the recent Gulf Coast storm.

Georgia Gov. Sonny Perdue has issued a month-long moratorium on the state’s 7.5-cent-per-gallon tax on gasoline and diesel fuel. Unlike proposals in other states, the order also includes a suspension of the state’s 4 percent sales tax on fuel until the end of September. The tax breaks will cost the state about $75 million in tax revenue.

Other states considering fuel cost relief actions include:

  • Republicans in Wisconsin are pushing a plan to give residents a fuel tax holiday for the rest of the year. Instead, Democratic Gov. Jim Doyle wants to repeal the state’s minimum markup requirement for diesel and gasoline.
  • A New Jersey lawmaker is considering legislation that would limit the wholesale price of diesel fuel and gasoline.
  • Pennsylvania Gov. Ed Rendell said he may ask state lawmakers to temporarily lift the state’s per-gallon fuel tax.
  • Democrats in the Missouri House want a two-week fuel tax holiday that would cut the state’s 17-cent-a-gallon tax on diesel and gasoline to 7 cents a gallon.
  • An Oklahoma lawmaker is calling for the suspension of motor fuel taxes in the state for the final three months of the year.
  • New Mexico Gov. Bill Richardson has rejected calls from some Republicans in the state to offer a fuel tax holiday. Instead, the Democratic governor is pushing a price gouging law.

– By Keith Goble, state legislative editor
keith_goble@landlinemag.com

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