Connecticut Governor Rell Signs Bill Deferring Gas Tax Increase

June 17, 2008 -- Connecticut Governor M. Jodi Rell today signed into law a bill that rolls back a planned increase in the state gas tax and opens the door to more gasoline stations offering customers a discount for making purchases with cash.

Senate Bill 1000, An Act Concerning Adjustments to Certain Petroleum Products Taxes, Petroleum Franchise Agreements, Gasoline Discounts for Consumers, Home Heating Oil and Propane Gas Contract Deposits and the Fuel Conservation Account, was passed during the special session last week.

Before the session began, Governor Rell asked the Attorney General’s office for clarification on whether the state could affect franchise agreements prohibiting cash discounts. She then asked the Legislature to both postpone as planned 0.5 percent increase in the Gross Receipts Tax on motor fuels and to pass a bill nullifying cash discount bans in the franchise agreements.

“Finally, the consumers of Connecticut are getting a bit of a break from the bruising price of gasoline!” Governor Rell said. “I know how hard times are – I pay bills just like any homeowner. And it is clear the state needed to take action, especially since no real change appears forthcoming from policymakers in Washington. So we have taken some important steps to help the families and businesses that are being battered by this horrendous energy price spiral.

“As I have said before, I can’t control OPEC and I can’t set the price of crude oil,” the Governor said. “I cannot single-handedly force Washington to make effective national energy policy – much as I would like to. That doesn’t mean we can throw up our hands, however. In fact, it means the state has to work harder than ever to provide what relief we can, and that is what this legislation will do.”

Also today, Governor Rell sent a letter to each of the roughly 1,200 gasoline dealers in the state, informing them she had signed the bill and urging them to begin offering cash discounts. The Governor said any gas station owners who run into difficulties with their parent companies over offering the discounts should contact the Department of Consumer Protection.

“The State of Connecticut will intervene where there is any attempt to undermine this effort,” the Governor told dealers.

The bill also establishes new protections for homeowners who make deposits on home heating oil contracts. This action follows the losses suffered by a number of Connecticut residents after a home heating oil contractor went out of business last winter.

“This bill is a good start on helping our hard-pressed consumers,” Governor Rell said. “But it is only a start – we know we cannot rest easy. My Administration is committed to fighting for every federal dollar available, demanding real and effective action from Washington and looking for every advantage as this struggle continues.”

Source: Connecticut Governor