Gas Tax Holidays Sweep States, But Not Wisconsin

Gas pump. (CC0 Public Domain)

A growing number of states are taking action to respond to spiking gas and diesel prices. But Wisconsin isn’t one of them.

States don’t have a lot of options to affect the prices at the pump, but a growing number are doing something as prices have soared amid President Donald Trump’s ongoing war with Iran.

• In Indiana, Republican Gov. Mike Braun issued an emergency order in May and suspended his state’s gas tax. The order has since been extended through Oct. 6.
• Georgia Gov. Mike DeWine, another Republican, declared a state of emergency Monday and suspended motor fuel taxes through Oct. 29.
• State lawmakers in Ohio are calling a special session this week to vote on a 90-day gas tax suspension supported by the Republican and Democratic candidates running for governor.
• In Texas, Republican Gov. Greg Abbott issued a disaster proclamation Monday allowing anyone to use dyed diesel, which isn’t taxed by the state because it’s designed for off-road farm equipment.
• California Gov. Gavin Newsom, a Democrat, waived regulations to allow refineries to switch to winter-blend gasoline early.

At the federal level, President Trump vowed in May to suspend the federal tax on gasoline, but never followed through. Competing legislation aimed at lifting the tax was introduced by Republican and Democratic members of Congress, but both remain stalled and neither bill got any votes from members of Wisconsin’s Congressional delegation.

Lifting Wisconsin gas tax would require legislative action, which seems unlikely

So far in Wisconsin, leaders of state government haven’t called for lifting Wisconsin’s gas tax of 30.9 cents per gallon, which hasn’t changed since 2006.

Doing so would require a special session of the Legislature, a bill that passes both chambers, and the governor’s signature. Spokespersons for Democratic Gov. Tony Evers, Assembly Speaker Robin Vos, R-Rochester, and Senate Majority Leader Devin LeMahieu, R-Oostburg, did not respond when asked by WPR if there were discussions about lifting the gas tax or taking other measures. All three are leaving office at the end of their terms.

Lifting gas taxes can offer temporary relief to customers, Gasbuddy.com founder Patrick De Haan told WPR, but it’s very expensive for states going that route.

“If you decide to suspend your gas tax, you’re going to need to figure out what part of your budget you’re going to find the money that you’re using in one area for another,” said De Haan. “So, states that have surpluses, it might be a little easier for a governor to be able to replace it, but some states it might not be.”

In Ohio, the three month gas tax suspension is expected to cost around $726 million and lawmakers are looking to use surplus state budget funds.

According the nonpartisan Legislative Fiscal Bureau, Wisconsin, which has around half the population of Ohio, takes in around $1 billion in gas tax revenue every two years. That means the state would lose around $44 million each month it wasn’t in effect.

Candidates in governor’s race have another idea

In Wisconsin’s race for governor, neither U.S. Rep. Tom Tiffany, R-Minocqua, nor Democratic Milwaukee County Executive David Crowley have called for lifting the state gas tax. But the two are unlikely bedfellows when it comes to repealing what’s known as the minimum markup law.

The Great Depression-era statute requires wholesalers and retailers to include a combined 9.18 percent markup on gas and diesel.

In an emailed statement, Crowley spokesperson Alexandra Gross blamed the current fuel price spike on “MAGA Congressman Tom Tiffany and Donald Trump.”

“Tom Tiffany had five opportunities to stop Trump’s reckless war-of-choice with Iran and lower gas and diesel costs, but he keeps voting no,” said Gross. “As governor, David Crowley will repeal the depression-era minimum markup on gas to give immediate relief to the families, farmers and manufacturers who are paying the price at the pump.”

Staff with Tiffany’s campaign did not immediately respond to a request for comment.

States are lifting gas taxes to ease pain at the pump, but not Wisconsin was originally published by Wisconsin Public Radio.