Cathy Osten

Sen. Osten Approves 3-Month Gas Tax Holiday, Another Sales-Tax Free Week

Over $100 million in tax savings for CT residents

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HARTFORD – On a day when regular gasoline prices hovered around $4 a gallon across Connecticut, state Senator Cathy Osten (D-Sprague) voted today to cut Connecticut’s gas tax by 25 cents a gallon for the next three months – saving Connecticut motorists an estimated $90 million between now and June 30.

Sen. Osten also voted today to create a second sales-tax free week on clothing and shoes valued at under $100 to take place in April; the move is expected to save Connecticut consumers $3 million.

Today’s vote also saves Connecticut commuters an additional $8.1 million by providing free public bus service transportation in Connecticut through June 30.

“I know the residents and businesses of eastern Connecticut have been hammered in recent weeks by gas prices that we haven’t seen in a decade and a half. Something had to be done, and quickly, even if it was just for a few months before gas prices can hopefully come off these historic highs. Now it’s up to local gas stations to lower their prices by 25 cents a gallon beginning April 1,” Sen. Osten said. “I’m also pleased to support the creation of another sales-tax free week in Connecticut for millions of dollars of savings on clothing, and also to allow for free public bus service throughout the state. Connecticut is in great financial shape, and if ever there was a time to give people a break, it’s now.”

Sen. Osten approved the combined $101.3 million in savings for Connecticut residents today by joining the bipartisan vote for House Bill 5501, “AN ACT SUSPENDING CERTAIN GAS TAXES AND SALES AND USE TAXES ON CERTAIN CLOTHING AND ALLOCATING FUNDS FOR FREE PUBLIC BUS SERVICES.” The bill had passed the House of Representatives earlier in the day and now heads to Governor Ned Lamont for his signature into law.

House Bill 5501 requires retail gas dealers to reduce their pump prices by 25 cents per gallon or face charges of unfair or deceptive trades practices. The $90 million gas tax cut will not affect Connecticut’s General Fund budget – which is now enjoying a $1.7 billion surplus – or its record-setting $3 billion Rainy Day Fund; the money will only affect the state’s Special Transportation Fund, where gasoline taxes are routinely deposited

The April sales tax holiday on clothing under $100 is designed to provide families with economic relief in the face of rising inflation, and it will be in addition to Connecticut’s annual tax-free week on apparel that traditionally takes place in August. Under sales-tax free week, clothing ad shoes with retail prices under $100 will be exempt from the state sales tax of 6.35%.