After a year of trying, Rep. Srinivasan and his Republican colleagues today succeeded in convincing their Democratic counterparts to cap the gross receipts tax on wholesale gasoline, a move that will restrict the rising costs of fuel.

Rep. Srinivasan voted in favor of SB 457 – AAC A Cap on the Petroleum Products Gross Earnings Tax and Penalties for Abnormal Price Increases in Certain Petroleum Products. The bill includes several safeguards to help curtail the rising cost of gasoline; most notably, it places a ceiling on the 7.53% tax rate on wholesale gasoline when the price reaches $3.00 per gallon.

Unlike the State’s gas excise tax, the gross receipts tax is a percentage of the product’s price, so the tax could skyrocket at a moment’s notice as the volatile market fluctuated. Thanks to this bill, commuters no longer have to pay more in taxes when the price of gas goes up – a long overdue reprieve.

The proposal to cap the gas tax has been proposed by Republican lawmakers 17 times since 2007 but was continually voted down by the majority. Last week the Democrats reversed course when they announced their support for capping the tax until next summer – a temporary break that would set in on the eve of election season and conveniently expire soon thereafter.

As a result of public outcry and minority resolve to alleviate a portion of the tax burden on struggling commuters, the Democrats caved again and finally agreed to permanently cap the tax.

However, they did vote against an amendment that would cap the tax rate which is separate from the ceiling this law created. Many GOP lawmakers feared that the Democrats were willing to cap the tax, but that they would make up the revenue by raising the tax rate.

“It’s no secret that the residents and businesses of Connecticut have been suffering for years under a stifling economic climate plagued by higher-than-average taxes. I am proud to say that the gross receipts tax cap offers tax relief to commuters across our State who are rightfully tired of being taxed to death and wanted to see change. I am very pleased with the outcome of today’s vote and I am hopeful that the legislature will have more opportunities this session to offer tax relief to the people of Connecticut.” Rep. Srinivasan said.