Connecticut trucking association bids for higher diesel tax

The Motor Transport Association of Connecticut (MTAC) recently proposed a bill to the state governor Dannel P. Malloy to increase the diesel fuel tax, The Connecticut Mirror reports.

However, the MTAC is also proposing a trade-off that will spare a bill that will allow municipalities to collect property taxes on large commercial vehicles (LCV). The fuel tax proposal is set to begin in July and the state already sports a 39.6 cents per gallon tax on diesel, which is adjusted by law to reflect increases in regular gas prices.

Officials told the news source that the increased tax will raise between $2 million to $3 million per year, which is shared both by in-state and out-of-state companies. Meanwhile, the proposed property tax only falls on the out-of-state businesses.

"To lose that property tax exemption would really be devastating to some of our members," Michael J. Riley, president of the association, told the news source. He added that some firms would face a tax hike approaching $100,000.

According to the U.S. Department of Energy, diesel prices have currently reached $3.98, which is a $0.04 increase from last week and almost a dollar increase from a year ago.

Connecticut trucking association bids for higher diesel tax

Wednesday, April 6th, 2011