Conn. Boosting Diesel Tax By 3 Cents in July

Connecticut’s diesel tax will go up 3 cents on July 1, pushing the levy from 39.6 to 42.6 cents a gallon under a recent budget agreement between state legislators and Gov. Dan Malloy (D).

“It’s going to be a big hit and it’s not a good year for us to be taking big hits,” said Michael Riley, president of the Motor Transport Association of Connecticut.

In addition, truckers may have to pay yet another per-gallon levy on July 1, depending on the indexing done annually on the state’s gross receipts petroleum tax, Riley said. He estimated indexing could mean a total levy of 45.6 cents on a gallon of diesel.

Malloy’s original proposal included a 3-cent-a-gallon tax increase on gasoline too but lawmakers balked at that.

Truckers successfully fought another provision that would have repealed the five-year property tax exemption the state allows on new equipment purchases.