Florida’s month-long gas tax holiday went into effect over the weekend, as some residents are noticing gas prices falling below $3.00 per gallon in some areas.
Gov. Ron DeSantis (R) signed the Florida legislature’s $1.2 billion tax relief package in May, designed to help Floridians weather the storm of inflation in President Biden’s America. The package included tax holidays and exemption periods for a variety of categories, including baby items, appliances, disaster preparedness, and gasoline, the last of which went into effect this month. It was expected to reduce the price of gas by roughly 25 cents, if properly passed on to the consumer.
“We’re doing $200 million in gas tax holiday, so that will reduce the fuel tax on October 1st by about 25 cents a gallon,” DeSantis announced during the May press conference.
Our gas tax holiday went into effect on Saturday, which means Floridians will receive $0.25 off every gallon they purchase this month.
This relief will help hardworking families across the state save money at the pump.
— Ron DeSantis (@GovRonDeSantis) October 3, 2022
“The Florida Motor Fuel Tax Relief Act of 2022 reduces the tax rate on motor fuel by 25.3 cents per gallon. Passed by the Florida Legislature and signed into law by Governor Ron DeSantis, the tax rate reduction begins Saturday, October 1, and extends through Monday, October 31,” the Florida Revenue website reads, detailing the gas tax holiday.
“The tax rate reduction applies to all gasoline products, any product blended with gasoline and any fuel placed in the storage supply tank of a gasoline-powered motor vehicle,” it continues:
Unlike sales tax, which is assessed on the taxable price of goods and services, fuel taxes are assessed on gallons when product is removed from a terminal or imported into Florida. These taxes are remitted to the state by licensed terminal suppliers and importers who then pass the fuel taxes down through the supply chain to the ultimate consumer at the pump. Under Florida law, all segments of the petroleum industry must pass along the reduced tax rate, so the consumer receives the full benefit of the tax suspension.
The national gas price average stood at $3.799 on Monday, according to AAA. Florida’s gas price average is well below that, standing at $3.221 as of October 3 — roughly 57 cents lower.
For greater perspective, the statewide average price of gas was $3.545 one month ago and $3.379 one week ago, prior to the gas tax holiday going into effect. Now, several counties in the Sunshine State are seeing gas prices hovering around $3.00.
Overall, the national gas price average has fallen from its record high of $5.016 in June, but it is still much higher than it was when former President Trump remained in office. A January 19, 2021, news release from AAA reveals that U.S. gas prices were $2.38 on Trump’s last full day in office, meaning prices are still nearly $1.42 higher this day.