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1 1 (March 9, 2022)

handle is hein.crs/govefjo0001 and id is 1 raw text is: SCongressional a Research Service Potential Impacts of a Federal Gasoline Tax Moratorium March 9, 2022 Even before the invasion of Ukraine by Russia, a major oil producer, the rise in the average nationwide price at the pump for gasoline from its pandemic low had led to interest in legislation that would suspend the 18.4 cents per-gallon federal gasoline tax through the end of 2022. Two identical bills introduced in the 117th Congress, S. 3609 and H.R. 6787, would suspend the gasoline tax through December 31, 2022, and transfer from the Treasury general fund amounts equal to any revenues forgone to the Highway Trust Fund (HTF) and the Leaking Underground Storage Tank (LUST) Trust Fund. Currently, 18.3 cents of the federal tax is dedicated to the HTF and 0.1 cent is dedicated to the LUST fund. The bills would encourage the Secretary of the Treasury to ensure that the benefit of the tax holiday is received by consumers. The bills would not suspend the tax on diesel fuel. Recent Gasoline Price Trends and Components According to the American Automobile Association (AAA), the national average price for a gallon of regular gasoline was $4.173 on March 8, 2022. That was about $1.40 higher than one year earlier. The current price exceeds the previous modern high of $4.114 per gallon in early July 2008, according to the U.S. Energy Information Administration (EIA). All figures are unadjusted for inflation. The EIA makes monthly estimates of the components of the retail price of gasoline. In January 2022, 56% was attributable to crude oil, 14% was related to refining, and 16% was related to distribution and marketing. Federal, state, and local taxes comprised 15% of the average retail price of gasoline, but with considerable variation across the country. Total state taxes added 31.0 cents to the price of a gallon of gasoline, on average, compared with the federal excise tax of 18.4 cents. At current price levels, the federal tax comprises about 4.4% of the retail price. Potential Effects on Retail Gasoline Prices The federal gasoline tax is levied when gasoline is removed from a refinery or terminal, or when gasoline is imported into the United States (26 U.S.C. §4081). Unlike a retail sales tax, the gas tax is not levied at the time of a retail purchase at a gasoline station. Congressional Research Service https://crsreports.congress.gov IN11879 CRS INSIGHT Prepared for Members and Committees of Congress

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