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State of Rhode Island General Assembly
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Senate Republicans urge immediate suspension of gas tax
Tax cut would provide aid to families struggling with inflation
STATE HOUSE, Providence
—The Senate Republican caucus is urging immediate action on their proposal to eliminate the state gas tax in 2022. In February, the caucus introduced (2022-S 2305) in an effort to provide relief to residents as they grapple with staggering inflation driving up the cost of everything from gasoline to bacon.
"Our neighbors in Connecticut made the right move when they suspended the gas tax earlier this week,” said Minority Whip Jessica de la Cruz (R-Dist. 23, Burrillville, Glocester, North Smithfield). “It is way past time that we do the same here. Rhode Islanders are getting absolutely crushed at the pump, and the state has the money to do something about it.”
The caucus proposes eliminating the gas tax – which is 35 cents per gallon – for the year 2022. This would save everyday Rhode Islanders $150 million. Senate Minority Leader Dennis Algiere, (R-Dist. 38, Westerly, Charlestown, South Kingstown) said the state can easily afford the tax cut in light of the current budget surplus and the resulting spike in sales tax revenue that will be generated by more consumer spending.
“We want to direct the influx in tax revenue back to residents and provide relief from the crushing pain at the pump,” Leader Algiere said. “Our state budget is benefiting from inflation as the gas tax brings in new, unexpected revenue. Meanwhile, the people of Rhode Island are struggling to balance their budgets with no relief in sight.”
The state budget surplus stands at $600 million. That, coupled with increased consumer spending that will follow the tax cut, will allow Rhode Island to provide a temporary gas tax suspension.
In addition to Connecticut, Maryland and Georgia have also suspended the gas tax. Several other states’ legislatures have also introduced proposals to suspend the tax.
For more information, contact:
Katie Haughey Cardoza
, Senate Minority Office
State House Room 20
Providence, RI 02903
Lt. Governor's Office
Secretary of State
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