Wolgamott Still Pushing For Gas Tax Holiday

(KNSI) – State Representative Dan Wolgamott wants all options on the table to help ease the pain at the pump. The average price for a gallon of regular unleaded gasoline is nearing $5.

Wolgamott says the measure with the most impact would be to suspend the gas tax. That would help save drivers 28.5 cents per gallon. Wolgamott proposes Minnesota government dips into a historic surplus to cover the loss in revenues. The gas tax is used to fund infrastructure projects.

Wolgamott says the tax holiday is not tied to a specific gasoline price.

“I would like to see it go through at least the start of the next legislative session. So that if we are still in a crisis point like we are now, that the legislature can decide whether or not to extend it.”

Five states have already enacted the measure, including Connecticut, Florida, Georgia, Maryland, and New York. Wolgamott points out that the states are in different regions of the country and their assemblies are controlled by differing political parties. He says there is strong bipartisan support for his measure and a special session should be called to get it passed.

There are other options too. Minnesota requires that gas stations sell fuel for eight cents above wholesale cost. Wolgamott explains the reasoning behind the statute.

“This law went into effect in 2001. Walmart had recently entered the gas station market and they were selling fuel at a loss to attract customers to its stores. And so, Minnesota legislators aiming to protect mom and pop retailers responded by imposing a law banning below-cost sales.”

Gas stations earn much higher margins on items sold inside their convenience stores. It could prove beneficial to allow them to sell fuel at a loss, attract more customers with lower prices and then hope that they’ll generate enough purchases of snacks and drinks to make up the difference.

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