October 31, 2022

Oil producers got best of Florida’s gas-tax ‘holiday,’ experts say

Jeffrey Schweers writes:

"Florida’s one-month gas tax holiday ended Monday without consumers ever seeing the full 25-cents-per-gallon break Gov. Ron DeSantis promised at the beginning of October.

The holiday did provide relief to the petroleum suppliers because they’re the ones who pay the tax to the state and then collect the money from the gas stations and convenience stores across Florida.

'It failed to meet its intended purpose if the goal was to provide relief to Florida taxpayers,' said Esteban Santis, an analyst at the Florida Policy Institute, a nonpartisan nonprofit organization [emphasis added] that studies policy and budget decisions.


Also, tax holidays don’t pay for themselves, Santis said.

'The only way to pay for a tax holiday is to increase taxes down the line or cut services,' Santis said. 'That’s why any tax holiday is not effective. They are kicking a problem down the road that we are going to have to deal with anyway.'

Florida taxpayers also may ultimately have to pay back that $200 million, since it came from the America Rescue Plan, he said.

'There is still ongoing litigation whether that’s allowed or not‚' Santis said. 'And if it turns out it’s not allowed, that fuel tax holiday is going to have to come out of general revenue, which means Florida taxpayers will pay in the end.'"

Read more on orlandonsentinel.com

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