- Florida’s state gas tax holiday went into effect on Saturday. Estimates suggest that the measure will save Floridians approximately 25 cents per gallon through October
- Gov. Ron DeSantis signed the tax holiday into law earlier this year, along with a series of other breaks on supplies and sales tax
- Since the implementation of the tax holiday, gas prices in Florida have decreased by 13 cents
Florida’s statewide gas tax holiday went into effect this weekend, aiming to lessen the soaring cost of fuel experienced this summer. Since the tax holiday went into effect on Oct.1, the state average price for gasoline declined 13 cents per gallon.
The tax holiday, which runs through the month of October, is estimated to save Floridians $200 million by lowering the price of gas by 25.3 cents per gallon. State leaders elected to hold the gas holiday in October as it is statistically the month with the fewest out-of-state tourists, directly benefiting a higher proportion of native Floridians.
“Our gas tax holiday went into effect on Saturday, which means Floridians will receive $0.25 off every gallon they purchase this month,” said Gov. Ron DeSantis. “This relief will help hardworking families across the state save money at the pump.”
DeSantis initially suggested an indefinite suspension of the gas tax, followed by a five-month suspension beginning with the start of the new fiscal year in July, but lawmakers reduced the proposal to just one month.
“There’s a whole bunch of things that go into the price of gas, different taxes, federal, state, local level. We’re taking over 25 cents from Florida and we’ll basically zero that out for as long as we can and do over a billion dollars,” said DeSantis upon the passage of the tax holiday.
As of Monday, the average gallon of gas will set drivers back $3.26 per gallon, which is nearly a dollar cheaper than the state average just three months ago. In June, the state average slowly crept towards $5 dollars per gallon, peaking at $4.89.
Beginning Jan. 1st, 2022, the statewide tax rate on fuel rose from 18.5 cents per gallon to 19 cents per gallon.
In addition to the 19 cents per gallon of state fuel taxes collected at the loading rack, terminal suppliers must collect a minimum local option fuel tax of 14.3 cents, a pollutants tax of 2.071 cents, and an inspection fee of 0.125 cents on each gallon of gas sold to licensed wholesalers.
In 2021, Florida was the 11th most expensive state for fuel taxes.
Gubernatorial candidate Charlie Crist was the first to publicly propose the tax holiday last November and sought that it would be funded by tapping into Florida’s reserve funds, as well as the nation’s strategic petroleum oil reserve.
In practice, the legislature voted to pull funding from federal dollars rather than the state reserve.
“This gas tax builds on the previous downward pressure on pump prices, stemming from global recession concerns and underwhelming fuel demand,” said Mark Jenkins, spokesman, for AAA. “Prices are now beginning to dip below $3 a gallon at various gas stations in the state. While everyone might not be so lucky to see sub-$3 gasoline, all Floridians should expect a sizeable discount this week.”