March 28, 2011

REP. JOHNSON VOTES TO LOWER GAS TAX
& PASS ON SAVINGS TO CONSUMERS

State Representative Susan Johnson voted for legislation (SB 457) that caps the gross receipts tax (GRT) on motor fuels at $3.00 per gallon wholesale.

“With skyrocketing prices at the pump hurting working families and small business—we needed to do something. Today’s bill offers immediate relief to consumers—not the big oil companies,” said Rep. Johnson.

Rep. Johnson explained that 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 $3.00 per gallon.

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.

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

Susan Johnson is serving her second term representing Connecticut’s 49th General Assembly District in Windham. She is Vice Chair of the state legislature’s Insurance & Real Estate Committee.