Oklahoma greenlights changes to gas tax law in anticipation of congressional action

OKLAHOMA CITY – Gov. Kevin Stitt signed a measure that could result in savings at the pump despite concerns that it could harm the state’s long-term ability to pay for roads and bridges.

The Republican signed House Bill 1370 on Monday, tossing out an existing state law that would have prevented motorists from attaining relief at the pump if Congress ultimately votes to suspend the federal gas tax.

For decades, Oklahoma had on the books a law that said if the federal government suspended its portion of the tax on gas and diesel, the state would raise its tax proportionate to the amount suspended.

Consumers are seeing increased fuel costs as a result of the war with Iran. Oklahomans on Tuesday were paying an average of $4.05 per gallon, up from $3.40 last month, according to AAA. 

In response to the soaring fuel costs, President Donald Trump has floated the idea of suspending the federal tax of 18.4 cents a gallon on gas and 24.4 cents a gallon on diesel to give consumers relief. Such a move would require congressional action.

The federal taxes help pay for transportation projects at the state level.

In addition to the federal tax, Oklahoma collects 17 cents per gallon on gas and 14 cents per gallon on diesel.

Oklahoma’s new law, which took effect immediately upon Stitt’s signature, removes the trigger that allowed the state to continue collecting the federal gas tax amount even if the federal government suspended it. 

It passed the Senate by a vote of 41-7 and the House by a vote of 89-1 on the final day of the session.

“Should President Trump move to suspend the federal gas tax, Oklahomans will now truly benefit from this relief,” Stitt said in a press release.

Sen. Mary Boren, D-Norman, was among those voting against the measure, saying lawmakers had a responsibility to provide roads and bridges.

She said most Oklahomans are willing to pay for good roads and bridges.

Senate Minority Leader Julia Kirt, D-Oklahoma City, said the Legislature should not respond to “knee-jerk, rash political decisions at the federal” level with the same action.

Sen. Shane Jett, R-Shawnee, unsuccessfully proposed suspending the state’s portion of the gas and diesel tax for the remainder of the calendar year.

Bobby Stem is executive director of the Association of Oklahoma General Contractors, which represents road and bridge builders.

“In the short term, we should see no change to the current program,” Stem said when asked about the impact of a federal suspension of the tax. “If this were to go past September or October, then the federal highway trust fund would become dangerously low and then we could see an impact.”

The Oklahoma Department of Transportation said it could not speculate about the impact a federal suspension would have on state road projects.

“In the event of a pause or suspension in the collection of the federal motor fuel tax, ODOT will work closely with our partners to understand the provisions and guidelines of the action and to adapt accordingly,” ODOT said in a statement. “Until such time that level of detail is available, ODOT is unable to speculate on any potential impact to Oklahoma’s transportation program.”