March 28, 2012

REP. GENGA VOTES FOR CAPPING TAX ON MOTOR VEHICLE FUELS

State Representative Henry Genga (D-East Hartford) voted Wednesday for legislation (SB 457) that puts a cap on the gross receipts tax for motor vehicle fuels.

Genga said the legislation specifically prohibits oil wholesalers and distributers (those who pay the gross receipts tax) from passing on anything purporting to be based on the tax for the portion of any sales price over $3 a gallon.

“Gas prices have risen 15 percent since the beginning of the year,” Genga said. “We have taken action today that will provide relief at the pump from these oppressive prices and all savings will go directly to Connecticut consumers — not the big oil companies.”

Large wholesalers in violation of profiteering statutes have much greater impact on consumers than individual retailers, so the legislation specifically grants the commissioner of the Department of Consumer authority to impose CUPTA fines of up to $10,000 upon large gasoline wholesalers and distributors who are in violation of profiteering laws.

The state’s petroleum profiteering law was also amended by today’s legislation to include an automatic trigger, based on extreme wholesale price increases, for price gouging protections to go into effect.

“If the big oil companies think they are going to reap the benefits—they are sorely mistaken. The state will take action — including serious fines — if there is any price gouging,” Genga said.

The bill, which is now headed to the governor for his signature, institutes similar profiteering protections in regards to home heating oil.