Senate Moves to Ensure Oklahomans Benefit from Potential Federal Gas Tax Relief
Pro Tem Paxton Calls on House to Stop ‘Waiting’ and Pass Measure Immediately
The Oklahoma Senate has amended legislation to ensure Oklahomans will see lower prices at the pump if the federal government suspends the federal gasoline tax.
Earlier this week, President Donald Trump said he wants Congress to suspend the federal gas tax to help Americans facing high fuel costs.
During a review of state law, Senate Appropriations Chairman Chuck Hall, R-Perry, and Senator Grant Green, R-Wellston, identified a little-known provision enacted in the 1990s that would automatically raise Oklahoma’s state fuel tax by the same amount as any federal tax reduction.
As a result, Oklahoma drivers would not receive the intended savings from federal action.
To prevent that outcome, the Senate adopted an amendment to House Bill 1370 repealing the outdated trigger language and ensuring consumers would benefit directly from any federal gas tax suspension.
“I commend Senator Hall and Senator Green for digging into this issue, working with the Oklahoma Tax Commission and identifying a solution that will allow Oklahomans to receive meaningful relief at the pump,” Pro Tem Lonnie Paxton said. “While some in the House spent the week posting online that they were ‘waiting’ on the Senate, senators were focused on finding practical ways to lower costs for Oklahoma families. The Senate has done its work, and I urge the House to take up this measure immediately so Oklahomans can benefit if Congress acts to suspend the federal gas tax.”
Current state law requires Oklahoma to impose an equivalent state tax increase whenever the federal government reduces its gasoline or diesel excise tax. The Senate amendment repeals that provision, allowing any federal tax cut to translate into lower prices at Oklahoma gas stations.
Senate Appropriations Chairman Chuck Hall, R-Perry, and Sen. Grant Green, R-Wellston, played an integral role in the Oklahoma Senate advancing legislation to lower gasoline prices.
As prices at the pump spike, Hall and Green worked diligently to find a timely solution to ensure that Oklahomans see tax relief when filling up their gas tanks.
Green presented House Bill 1370 on the Senate floor to repeal this provision in law. This legislation ensures that all Oklahomans will see the benefits if Congress suspends federal gas taxes of 18.4 cents per gallon of gasoline and 24.4 cents per gallon of diesel fuel.
“High gas prices are hitting Oklahoma families and small businesses hard,” Green said. “Taxpayers are tired of their state government driving up the cost of everyday necessities through outdated Democratic-era tax policies that are still on the books today. By passing House Bill 1370, the Senate stands behind President Trump to make sure state law doesn’t get in the way of Oklahomans saving money at the pump.”
Chairman Hall said the financial impact of rising gas prices is one of the biggest concerns he’s hearing from constituents across his district.
“Oklahomans are feeling pain at the pump every time they gas up,” Hall said. “This legislation ensures Oklahomans will actually benefit from a federal gas tax suspension. I’m proud the Senate worked quickly and decisively to provide this tax relief for all Oklahomans.”
The Senate passed HB 1370 in a vote of 41 to 7. The measure now advances to the House for final passage.