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After record highs in June, gas prices are finally declining. A half-dozen states tried to ease the pain at the pump by temporarily suspending their regular tax on gasoline. Most of those gas tax "holidays" have already come and gone, mlb jersey but a few are still in effect. (New York's runs until Dec. 31.)
Critics argued that any savings would be eaten up by oil producers and gas stations. But a study from the University of Pennsylvania's Wharton School of Business found that in Maryland, Georgia and Connecticut -- which all instituted early gas tax holidays -- consumers reaped the benefits.
The researchers prefaced their findings by saying "price reductions were often not sustained during the entire holiday."
Nearly three-quarters (72%) of Americans support suspending their state fuel tax, according to a Politico/Morning Consult poll from March.
Which states have put the brakes on gas taxes? Which gas tax holidays are still in effect? And how much are they really saving drivers? Here's everything you need to know.
Which states suspended their gas tax?
Proposals to limit fuel taxes, which fund interstate highway repair and mass transit projects, have been introduced in more than 20 states. So far only six have pulled the lever. Several of these efforts have come and gone, allowing economists to determine whether they produced real savings for consumers.
Maryland
Maryland became the first state to pause its gas tax, suspending the 36-cent-a-gallon tax on retail gasoline and the 37-cent tax on diesel from March 18 to April 18.
"This is, of course, not a cure-all, and market instability will continue to lead to fluctuations in prices," said Maryland Gov. Larry Hogan.
The Wharton study found that the March gas tax break had mixed results. Though prices declined 5% while the tax was suspended, after it expired, "gasoline prices in Maryland became higher than what they would have been if the gasoline tax holiday never occurred."
But the net result was still a win for motorists, researchers said, with 72% of tax savings being passed onto consumers.
"The suspension of the state gasoline tax in Maryland reduced prices faced by consumers by 26 cents [a gallon] on average over the course of the gasoline tax holiday," the study said.
On July 1, Maryland's gas tax, which is tied to inflation, automatically rose 7 cents, to 43 cents per gallon. Comptroller Peter Franchot has called for a special session of the General Assembly to pass another three-month gas tax holiday. If it did, a two-car household fueling up on 15 gallons a week could see a savings of more than $150 over the 90-day pause, Baltimore station FOX 45 estimated.
![A woman in a car holds out cash to pay for gas]()
Georgia's gas tax holiday ran through July 14.
Carl D. Walsh/Getty Images
Georgia
Georgia's General Assembly voted unanimously to pause state fuel taxes until May 31, shaving 29.1 cents a gallon off the price of gasoline and 32.6 cents per gallon off diesel. Gov. Brian Kemp, who said lost revenue is being covered by state surplus funds, later extended the gas tax holiday until July 14.
According to the Wharton report, savings in Georgia gradually grew from 7 cents a gallon on March 24 to around 30 cents a gallon on May 16. In all, the researchers found that 58%-65% of tax savings were passed on to consumers
Georgia last suspended its fuel tax in May 2021, when the Colonial Pipeline network shut down.
Connecticut
Connecticut Gov. Ned Lamont signed a bipartisan bill
on March 24 temporarily lifting the state's 25-cent-per-gallon excise tax on gasoline from April 1 to June 30 -- a step that he said would save drivers an estimated $90 million.
According to the Penn study, Gasoline prices declined immediately after the pause went into effect. Savings grew from 11 cents on April 2 to 23 cents on April 15, but by May 16 they'd shrunk to about 14 cents.
In all, consumers reaped 71%-87% of the savings from the tax pause, mlb shirts the researchers found. Lamont has since extended the gas tax holiday through November 30, 2022.
New York
In April, lawmakers in Albany approved a budget that suspends the state's 8-cent fuel tax and an 8-cent sales tax between June 1 and Dec. 31. The move is projected to save New York drivers about 16 cents a gallon.
"By suspending certain fuel taxes for the next seven months, New York is providing some $609 million in direct relief to New Yorkers, a critical lifeline for those who need it most," Gov. Kathy Hochul said in a statement.
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