NAUGATUCK — State representatives Rosa Rebimbas (R-70) and David Labriola (R-131) voted Thursday in favor of bipartisan bill imposing a permanent cap on the gross receipts tax.
“This tax relief is a major victory for the hardworking taxpayers of Connecticut. I am proud to have supported this measure and I am pleased that it was a truly bipartisan accomplishment.” Labriola said in a news release.
The bill includes several safeguards to help curtail the rising cost of gasoline. Most notably, it places a ceiling on the 7.53 percent tax rate when the price of gasoline reaches $3 per gallon.
Unlike the state’s gas excise tax, the gross receipts tax is a percentage of the product’s price, so the tax could increase at a moment’s notice as the volatile market fluctuates.
As a result of this bill, commuters no longer have to pay more taxes when the price of gas goes up, the release stated.
“This law is going to provide some much needed tax relief to our commuters that are suffering in this economic climate. I am very pleased that it passed both chamber unanimously, which demonstrates that our best work is done in a cooperative and bipartisan fashion. I hope that this effort will set a precedent for the rest of the session and that there will be more good news to come for Connecticut taxpayers. ” Rebimbas said in the release.
The proposal to cap the gas tax has been proposed by Republican lawmakers 17 times since 2007 but has continually failed to gain momentum with other member of the legislature until this year. Last week the Democrats reversed course when they announced their support for capping the tax until next summer — a temporary break that would set in on the eve of election season and conveniently expire soon thereafter, the release stated.