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Politics / Issues

DeSantis' proposed $1B state gas-tax relief may not move dollars away from transportation projects

AAA says we haven't quite reached pre-pandemic levels of demand for gas.
Corey Frey
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AAA says we haven't quite reached pre-pandemic levels of demand for gas.

The president of the Florida Transportation Builders Association says the tax cut won't address supply and demand issues.

Gov. Ron DeSantis wants lawmakers to spend $1 billion in surplus revenue next year to give Floridians a six-month break from paying state gas taxes.

DeSantis says the proposal won’t take away funding for transportation projects.

Florida Transportation Builders Association President Ananth Prasad says the group is thankful that the proposal wouldn't cut funding to the state Department of Transportation.

“If the governor did not backfill that suspension of gas tax, which amounts to about a billion dollars, that’s going to be a huge impact to the state’s ability to deliver projects," Prasad said. "A billion-dollar impact to DOT is much more significant than just a billion dollars. A dollar results in a dollar fifty to two dollars worth of projects.”

Prasad says pausing the collection of about 27 cents per gallon of gas wouldn't address the supply and demand issues driving up prices at the pump, but it would likely offer residents some relief.

DeSantis says it would save the average family about $200.

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