Contact:  Gene Guilford gene@icpa.org or Chris Herb chris@icpa.org
For Immediate Release  March 13, 2012

CONNECTICUT MOTOR FUELS TAXES DRIVING BUSINESS OUT OF STATE

Without taxes prices the same as our neighbors - with taxes it drives border business to our neighbors

[Cromwell, CT] ICPA and it's 576 member companies in the retail heating fuel and motor fuels business issued its strongest rebuke of the state's motor fuels tax system to date today. "Today, our Connecticut businesses that contribute $1.3 billion in tax and license revenues to the State of Connecticut are getting killed along our borders with Massachusetts and Rhode Island - all because our taxes on motor fuels are so much higher than our neighboring states."

State State Excise Tax Other State Taxes Federal Tax Total Taxes Per Gallon AAA Average Retail Price/Regular Gasoline - 3/13/2012 Retail Price Minus Government Taxes
NY $0.0805 $0.3630 $0.1840 $0.6275 $3.99 $3.36
CT $0.2500 $0.2334 $0.1840 $0.6674 $3.99 $3.32
RI $0.2900 $0.0400 $0.1840 $0.5140 $3.80 $3.29
ME $0.2950 $0.0150 $0.1840 $0.4940 $3.82 $3.33
MA $0.2100 $0.0250 $0.1840 $0.4190 $3.74 $3.32
NH $0.1700 $0.0260 $0.1840 $0.3800 $3.70 $3.32
VT $0.2350 $0.0100 $0.1840 $0.4290 $3.80 $3.37
NJ $0.1050 $0.0400 $0.1840 $0.3290 $3.61 $3.28

Without taxes, Connecticut gas prices are about the same as our neighbors. With state taxes, Connecticut gas prices are 25c a gallon cheaper in Massachusetts and 19c a gallon cheaper in Rhode Island. This circumstance is intolerable for Connecticut's competitiveness and threatens our very survival.

 

State State Excise Tax Other State Taxes Federal Tax Total Taxes Per Gallon AAA Average Retail Price/Diesel Fuel - 3/13/2012 Retail Price Minus Government Taxes
NY $0.0850 $0.3230 $0.2440 $0.6520 $4.39 $3.74
CT** $0.4620   $0.2440 $0.7060 $4.36 $3.65
RI $0.3000 $0.0100 $0.2440 $0.5540 $4.18 $3.63
VT $0.2500 $0.0100 $0.2440 $0.5040 $4.26 $3.76
MA $0.2100 $0.0250 $0.2440 $0.4790 $4.15 $3.67
ME $0.3070 $0.0700 $0.2440 $0.6210 $4.26 $3.64
NH $0.1800 $0.0160 $0.2440 $0.4400 $4.15 $3.71
NJ $0.1350 $0.0400 $0.2440 $0.4190 $4.00 $3.58

The same dislocation in gasoline is also found in diesel fuel, as the chart above demonstrates. Without taxes Connecticut's retailers sell diesel fuel for about the same prices as our neighbors. With taxes, Connecticut's diesel prices are 21c a gallon higher than Massachusetts and 18c a gallon higher than Rhode Island. What trucker in his or her right mind will buy diesel fuel in Connecticut at these prices if he or she can fill up out-of-state and transit Connecticut without buying a thing?

Connecticut has the highest combined gasoline and diesel fuel taxes in the Northeast - and among the highest in the nation. The state is destroying border businesses with this tax policy and, in so doing, biting the very hand that feeds the state $1.3 billion a year in tax and license revenue.

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ICPA represents more than 576 Connecticut based independent businesses. These businesses serve more than 680,000 heating fuels consumers, employ 13,000 Connecticut citizens at the majority of our state's 1,400 motor fuels outlets and 600 heating fuels retailers. ICPA's offices are at 10 Alcap Ridge, Cromwell, CT  06416.  For more information about today's Press Release, contact Gene Guilford or Chris Herb.