Pennsylvania Senate approve bill eliminating gas tax increase

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Pennsylvania Sen. Joe Pittman (R-41) announced Friday that the Senate had approved a bill to stop an automatic gas tax increase this year.

When gas rose above $2.00 last year, it triggered an automatic increase in the state’s gas tax that went into effect on Jan. 1. SB 35 would eliminate that tax increase, preventing what Pittman said was the second-highest gas tax in the country behind California.

“This gas tax hike was not the result of any recent legislative or statutory changes, but rather a direct result of inflation caused by government policies – primarily at the federal level,” said Pittman. “The increase comes at a time when Pennsylvanians are already facing higher driver and license fees imposed by PennDOT. With passage of Senate Bill 35, we are working to reverse this new tax and help Pennsylvanians keep more of their hard-earned money.”

In a memo to lawmakers on Dec. 9, 2022, Sen. Wayne Langerholc, Jr. (R-35) said Act 89 of 2013 eliminated the flat gas tax of 12 cents per gallon, requiring the Pennsylvania Department of Revenue (DOR) to annually assess the gas tax based on the average wholesale price of gas, which is statutorily set at $2.99 per gallon. In 2022, the gas tax was 58 per gallon for gas and 74 cents per gallon for diesel. The annual assessment in 2023 exceeded $2.99 per gallon, causing an automatic increase of up to 5 cents per gallon.

Langerholc urged lawmakers to sponsor SB 35 to rein in Pennsylvania Department of Transportation spending.

Pittman said the legislation also requires the DOR to re-evaluate the average wholesale gas price. The bill now heads to the state House of Representatives.