Gross Receipts Tax Rises With Gas Prices
Connecticut motorists can’t blame higher gasoline prices on the cost of oil alone. While the state and federal gasoline excise taxes are a constant, Connecticut’s has another tax on gasoline that rises and falls with prices. The Gross Receipts Tax, also known as the oil company tax, is a percentage charged on the wholesale price of gasoline.
In the past two months, the 7.53% tax has risen from roughly 19 cents a gallon to 23 cents, according to Gene Guilford, who serves as president of the Independent Connecticut Petroleum Association, which represents local gasoline and heating oil retailers.
The Gross Receipts Tax is on top of the state gasoline excise tax of 25 cents a gallon and the federal excise tax of 18.4 cents a gallon.
The average price for a gallon of regular gasoline in Connecticut was $3.82 on Monday, according to the AAA’s Daily Fuel Gage Report, up from $3.68 a month ago and $2.93 a year ago.