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1 1 (June 27, 2022)

handle is hein.crs/goveieo0001 and id is 1 raw text is: Congressional ____ & Research Service Potential Impacts of a Federal Gasoline Tax Moratorium Updated June 27, 2022 Gasoline price increases have generated interest in legislation suspending the 18.4 cents-per-gallon federal gasoline tax. On June 22, 2022, President Biden requested that Congress suspend the gasoline tax for three months, from July to September 2022. No corresponding legislation has been introduced, but other bills pending in the 117th Congress, including S. 3609, H.R. 6787, H.R. 7751, and H.R. 7926, would suspend the tax on gasoline for various periods of time. None of the pending bills would suspend the 24.4 cents-per-gallon tax on diesel fuel used on highways. Recent Gasoline Price Trends and Components According to the U.S. Energy Information Administration (EIA), the national average price for a gallon of regular gasoline was $5.006 on June 13, 2022. That was about $1.937 higher than one year earlier. The June 13 price was the highest price since at least 1990. All figures are unadjusted for inflation. The EIA makes monthly estimates of the components of the retail price of gasoline. In May 2022, 59% was attributable to crude oil, 26% was related to refining, and 5% was related to distribution and marketing. Federal, state, and local taxes comprised 11% 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 3.7% 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. S. 3609 and H.R. 6787 would encourage the Secretary of the Treasury to use all applicable authorities to ensure that the tax reduction is received by consumers. However, this provision may be difficult for the federal government to enforce. Enforcement may require estimating what the price of gasoline in each locality would have been in the absence of a federal gasoline tax suspension. Over an extended period of Congressional Research Service https://crsreports.congress.gov IN11879 CRS INSIGHT Prepared for Members and Committees of Congress

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