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Florida Democrats push for fuel tax suspension

With the price at the pump in Florida pushing $3 per gallon, state Democrats are proposing a little relief for truckers and other drivers.

Democrats in the state’s Senate are calling on Gov. Jeb Bush to take action by executive order instead of waiting for a possible special legislative session in October. They say he has the power to take immediate action to temporarily cut the state’s tax on diesel fuel and gasoline.

Bush, a Republican, said cutting taxes is one of the few actions he can’t do by himself and instead will consult with Republican leaders in the Legislature about tax cuts.

The governor has pledged to support a fuel tax cut if lawmakers can reach agreement on the issue.

The Legislature last year approved a one-month, 8-cent-per-gallon reprieve in the state’s gasoline tax during August. The tax break cost the state nearly $60 million in lost revenues, the Tallahassee Democrat reported.

The Democratic current proposal would temporarily suspend the state’s 21-cent-per-gallon tax on gasoline and 29-cent-per-gallon tax on diesel. It doesn’t address the status of International Fuel Trade Agreement requirements for miles driven in Florida .

Florida isn’t alone in its pursuit of combating higher prices at the pump brought on by Hurricane Katrina.

Georgia Gov. Sonny Perdue issued a month-long moratorium on the state’s 7.5-cent-per-gallon tax on gasoline and diesel fuel. It includes a suspension of Georgia ’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.

Perdue and state legislators also took action to temporarily remove the IFTA obligation for Georgia miles driven by truckers. Truckers driving through Georgia during the tax holiday will still have to report their IFTA miles, but they won’t owe any tax on miles driver during that period.

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.
  • Gov. Joe Manchin has vowed to freeze fuel taxes for one year in West Virginia . Manchin announced plans to sign an executive order to stop the scheduled increase, which was expected to take effect on Jan. 1.
  • Some Republican lawmakers in Tennessee are urging Democratic Gov. Phil Bredesen to temporarily suspend the state’s per gallon tax on gasoline and diesel fuel. Bredesen said he thinks it’s a bad idea.

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

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