State Rep. Rob Sampson (R-80) participated in the “Cap the Gas Tax” Rally at the State Capitol, March 21st.
Recent news about steadily increasing prices has again spotlighted the issue. The proposed legislation would cap the gross receipts tax whenever the wholesale price of gas hits $3 a gallon. The cap would have gone into effect on Monday February 13th, the first time this year the wholesale price hit $3.00 for a gallon of gas.
The gross receipts tax fluctuates when the wholesale price of gasoline fluctuates. Connecticut’s Gross Receipts Tax is collected at the wholesale level. The gasoline retailers who purchase the fuel from wholesalers ultimately pass the cost of the gross receipts tax they pay onto consumers.
Connecticut currently has some of the highest gas taxes and gas prices in the country. This gross receipts tax adds about another 25 cents or more per gallon.