10/25/05-Rep. Stephen Nass, R-Whitewater, has drafted a two-part bill that would stop the annual indexing of motor fuels and institute at least a 30-day fuel tax holiday.
The effort would eliminate 29.9 cents per gallon from the state’s gasoline and diesel tax for 30 days. It would not suspend the 3-cent-per-gallon oil inspection fee.
Gov. Jim Doyle would also have the option to extend the holiday another 30 days.
Nass said in a released statement the tax break could save consumers $178 million over the course of two months.
The second part of the bill would end automatic increases in the state’s fuel tax and require lawmakers to annually vote on any tax changes.
The automatic increase in the tax has been adjusted for inflation on April 1 each year since 1985. This year, the tax increased 0.8 cents a gallon.
With the new tax rate, Wisconsin claims the highest average fuel tax in the nation. Revenue from the tax, which is almost 14 cents per gallon higher than the national average, is primarily used to build roads.
Nass said dropping the automatic indexing would save consumers more than $38 million in the next two years.