Updated June 22 2022.

Lawmakers in 26 states have introduced 72 bills this year to suspend or repeal transportation revenue sources, according to analysis by the ARTBA-TIAC team. Five states have approved gas tax suspensions. Here’s a roundup:

States Gas Tax Suspensions Enacted

  • New York Gov. Kathy Hochul (D) enacted a 2022-2023 fiscal year budget on April 8 that suspends the state’s 16 cents-per-gallon gas tax from June 1 through Dec. 31. It leaves in place the 17.3 cents-per-gallon petroleum business tax and other local gas taxes— of which the latter can be removed at the discretion of local governments— and authorizes monthly general fund transfers to the state transportation trust funds during the suspension to replace the approximately $565 million of lost revenue.
  • Connecticut Gov. Ned Lamont (D) March 24 signed into law a suspension of the 25 cents-per-gallon state gas tax from April 1 through June 30. It will result in an estimated $90 million loss to the transportation fund.
  • Maryland’s legislature passed and Gov. Larry Hogan (R) March 18 enacted legislation to immediately suspend the 36.1 cents-per-gallon gas tax for 30 days. It provided $100 million from the state’s general fund surplus to cover the anticipated $93.6 million revenue loss. The legislature declined to consider further legislation to extend the suspension.
  • Georgia’s legislature approved and Gov. Brian Kemp (R) signed March 18 a measure to suspend its motor fuels tax from March 19 through May 31, and later extended the suspension through July 14. The state is projected to forego $160 million monthly in transportation revenue by waiving the 29.1 cents-per-gallon tax. Statehouse leaders have indicated they intend to backfill the loss from surplus revenue but have yet to enact a law doing so.
  • Florida lawmakers included a one-month gas tax suspension beginning Oct. 1 in the state’s budget bill that March 14 passed initial review from the state legislature, with $200 million in surplus general fund revenue set to offset the forgone user fee resources. Gov. Ron DeSantis (R) approved the bill May 5.

Failed Legislation

  • Michigan Gov. Gretchen Whitmer (D) vetoed legislation April 1 from the Republican-majority legislature to suspend the state’s gas tax for the six months. She is urging the legislature to consider different methods to provide inflation relief.

Other State Actions on Inflation

  • Illinois lawmakers on April 9 sent Gov. J.B. Pritzker (D) a bill to impose a six-month delay on a scheduled 2.2 cents-per-gallon gas tax increase, set to take place July 1. The change was calculated as part of the variable-rate gas tax formula that indexes the tax to changes in the Consumer Price Index. The $135 million in lost revenue will be backfilled from the state’s Underground Storage Tank Fund. The governor is expected to approve the measure.
  • Kentucky Gov. Andy Beshear (D) announced on June 2 the suspension of a 2.5 cents-per-gallon automatic gas tax increase scheduled for July 1. The increase was expected to generate about $60 million annually. No revenue has been identified to backfill the loss.
  • Virginia lawmakers March 12 agreed to repeal the state’s grocery tax, which provides approximately $135 million annually to the transportation fund. No alternative funding has been proposed to cover the loss of revenue.
  • Tennessee approved legislation April 28 to waive the state’s vehicle registration renewal fee. The $121 million loss will be backfilled by General Fund surplus revenue.
  • Lawmakers in Colorado voted May 2 to delay the implementation of a road usage fee, rescheduled from a start date of July 1 to April 1, with backfill from the general fund to make up for any lost revenue.
  • New Mexico leaders approved a personal income tax rebate to state residents, citing gas prices as one of the reasons along with grocery costs and general inflation. Revenue will come from the general fund. A similar measure has been approved by the Delaware state legislature and is pending the governor’s approval.

Additionally, Puerto Rico enacted legislation on June 14 to suspend the commonwealth’s gas tax for 45 days.

Most states are nearing the end of their legislative session, though special sessions are still possible. ARTBA-TIAC will continue to track these developments.

More information: