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 

OKLAHOMA CITY – 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To prevent that outcome, the Senate adopted an amendment to House Bill 1370 repealing the outdated trigger language and ensuring consumers would benefit directly from any federal gas tax suspension.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.