Texas Agriculture Commissioner Sid Miller today issued a bold and urgent call to Texas Governor Greg Abbott: temporarily suspend the state’s motor fuel tax immediately. With diesel and gasoline prices skyrocketing, Miller warned that the tax is inflicting severe pain on Texas working families.
Texas currently has a $0.20 per gallon fuel tax.
“Governor Abbott, it’s time to act decisively and suspend the Texas gas tax now,” Miller declared. “Not next legislative session. Not after another study. Now. Every extra dollar working Texans spend on fuel is a dollar taken from their bottom line. Suspending this tax is one of the fastest and most effective steps we can take to support Texas families.”
Miller pointed to action already taken in other states and challenged Texas to lead. “Indiana and Georgia have already suspended their gas taxation. Texas, the nation’s energy and agricultural powerhouse, should be leading the way. We have a strong economy and a healthy rainy day fund. There is no excuse for state government to keep padding its accounts; our families struggle to fill their tanks and feed their kids.”
Miller warned that inaction will deepen the economic strain across the state: “This is about survival for many Texans,” Miller concluded. “Failure to temporarily suspend the fuel tax now will only drive up costs for every family. Governor Abbott, use the authority you have and act today. Texas families cannot afford to wait.”
Critics of the move note that while suspending the fuel tax would likely offer some immediate, moderate relief at the pump, saving approximately $1 on a 5gallon fill-up, it would simultaneously cut about $800 million in funding for state highway repairs and public education. Instead of a total suspension, officials have sometimes utilized targeted actions, such as temporary waivers of licensing requirements for fuel trucks during supply issues.
The governor’s office issued a temporary waiver to suspend licensing requirements of the International Fuel Tax Agreement when needed relief supplies and fuel are delivered into Texas by truck. Diesel fuel meant for offroad use only, such as in farm and construction equipment, is not taxed.
Since 1994, federal law has required such diesel fuel to be dyed bright red to signify its taxability status.
Using dyed diesel on the highway, or knowingly selling it for such use, is illegal under both Texas and federal law. The waiver was set to expire on March 22.