Inflated fuel prices are especially harmful to small business
Across the nation, state governments are considering – and in some cases have already passed – fuel tax holidays that temporarily suspend state-level gasoline taxes in response to sky-high prices. This wave of tax relief has been endorsed and celebrated by NFIB state directors, as high fuel prices are especially burdensome to small business owners.
Georgia has become a leader in the movement to suspend gas taxes in response to skyrocketing prices. After Governor Brian Kemp called on the legislature to get the suspension onto his desk as quickly as possible, the House of Representatives passed the suspension unanimously. NFIB Georgia state director Nathan Humphrey praised the state government’s action on this issue.
Florida has already passed a gas tax suspension that will take effect in October. NFIB State Director Bill Herrle praised the state government for this move. “Diesel and gasoline expenses add to the cost of just about everything, from supplies and raw materials to driving to the store and making deliveries. The proposed fuel tax holiday will reduce the cost of living and doing business in the Sunshine State and ease the financial pressure on Florida businesses and families,” he said in a statement. Connecticut and Maryland have also passed gas tax holidays in principle.
In California, the largest state in the union with one of the highest gas taxes, NFIB has called on the governor and legislative leaders to suspend gas taxes along with several other small business relief measures. Governor Gavin Newsom promised to address rising gas prices in his State of the State address, although he did not offer specifics on how he would do so. “We are pleased the governor and legislative leaders have acknowledged the financial hardship people are feeling at the pump,” said John Kabateck, NFIB’s California state director. “These are perilous times for small businesses, many of which are still rebuilding after two years of COVID-instilled slowdowns. We take our leaders at their word that they will act without haste to bring some relief to the hardworking small-business owners and their many employees.”
In Virginia, Governor Glenn Youngkin called for a one-year suspension of the state’s gas tax. “Governor Youngkin understands that a fuel tax increase is just about the last thing that our small business owners need right now,” said Julia Hammond, NFIB state director in Virginia.
In Michigan, it’s leaders in the state Legislature who support suspending the state’s gas tax of $0.27 per gallon. Governor Gretchen Whitmer previously called for a suspension of the federal gas tax. “Small business is grateful to Senate Majority Leader Shirkey and Speaker Wentworth and the legislature for taking quick action to help mitigate fuel costs in Michigan. The current increase in fuel costs will have a chilling effect on an already fragile supply chain,” said Michigan State Director Amanda Fisher.
In Mississippi, Lieutenant Governor Delbert Hosemann called for a six-month suspension of the gas tax. Once more, NFIB state leadership threw their support behind the proposal. “Suspending the fuel tax, along with eliminating the state income tax, will relieve some of the financial pressure on small businesses as well as their customers,” said State Director Dawn McVea in a statement.
If inflated fuel costs are a concern for your small business, please take a few minutes to send us your experience and comments on this important issue.