With election pressure mounting, states move to suspend fuel taxes

With Election Day less than a month away, lawmakers in several states are suspending gas taxes or rolling back regulations on diesel fuel as voters grow increasingly frustrated with rising fuel costs amid President Donald Trump’s war with Iran.

On Tuesday, Trump issued an executive order to expand access to tax-free diesel fuel nationwide, following the lead of several governors who have taken the same step.

Trump signed the order at a Nebraska rally, promising U.S. Sen. Pete Ricketts and Gov. Jim Pillen, both Republicans, that “this should absolutely ensure your election, I guarantee you that,” the Associated Press reported.

In at least four states — Georgia, Indiana, Ohio and Utah — leaders have moved to temporarily suspend or reduce the state tax on gasoline.

Ohio lawmakers voted last month to approve a 90-day gas tax holiday, a move called for by both the Democratic and Republican candidates for governor.

While many Democrats joined with Republicans to pass the bill, some Democratic leaders called the measure a last-ditch effort to salvage the GOP’s electoral prospects, the Ohio Capital Journal reported.

“If this had been so important, we would have acted (earlier this year), but we didn’t,” said Senate Minority Leader Nickie Antonio, a Democrat. “They said we have nothing more to take up until after the election, and then suddenly they got polling numbers, and the polling numbers told them they were behind.”

Georgia Republican Gov. Brian Kemp suspended the state’s gas tax with an executive order, as did Indiana Republican Gov. Mike Braun.

And Utah lawmakers voted earlier this year to temporarily reduce the gas tax by 15%.

Tennessee governor lets farmers use untaxed diesel on roads after Trump defers federal enforcement

Meanwhile, 10 states had reduced restrictions on the use of tax-exempt diesel fuel prior to Trump’s order that loosened those restrictions nationwide.

That fuel, known as red-dyed diesel, is normally only allowed for off-highway agricultural, industrial and railroad use, according to the North Dakota Monitor. Some governors have issued executive orders expanding the use of red-dyed diesel, which is not taxed like regular diesel,  in a bid to help farmers and truckers with transportation costs.

North Dakota, Nebraska, Oklahoma, Texas, Missouri, Arkansas, Louisiana, Alabama, North Carolina and Indiana have all issued similar orders, according to the Associated Press.

“Texas agriculture and freight run on diesel,” Texas Republican Gov. Greg Abbott said in a statement, according to the Texas Tribune. “Record prices put both industries at risk and raise costs for every Texas family.”

Tennessee Republican Gov. Bill Lee also issued an order Tuesday allowing farmers and loggers to use red-dyed diesel on public roads, at the urging of state lawmakers.

In other states, leaders are facing pressure to take similar action.

Legislative leaders in North Carolina have called for a special session on fuel prices. Some lawmakers there have suggested that the state could use surplus revenue from state reserves to pay for road projects while temporarily suspending the gas tax.

The Iowa Corn Growers Association is urging lawmakers there to follow suit, while asking them to push the Trump administration to release oil from the U.S. Strategic Oil Reserve.

In Kentucky, Republican Agriculture Commissioner Jonathan Shell has asked Democratic Gov. Andy Beshear to also roll back restrictions on untaxed diesel. And Connecticut Republicans have proposed a three-month holiday on fuel taxes, while Democrats have countered that they should focus on ending Trump’s war with Iran.

Stateline reporter Alex Brown can be reached at [email protected].