Governor Rendell Outlines Scenario on Possible Cut in Gas Tax and Impact on State Transportation

PHILADELPHIA, Sept. 2 -- The attached chart, which Governor Rendell discussed today at a press conference, describes the impact of cutting Pennsylvania's gasoline tax at various levels and for a one, two, three or four-month period.

Governor Rendell explained that the per person amount would be in the form of a rebate each motorist could receive at the time of vehicle registration renewal based on the amount and length of any cut in the gas tax. For example, a 30 cent cut in the gas tax for three months would equal a one-time cost to the Pennsylvania Department of Transportation (PennDOT) of $495 million.

A driver using 650 gallons per year uses 55 gallons per month (55 times three months times 30 cents equals $50). Thus, in this scenario, an individual motorist would receive a rebate of $50 as a result of such a tax cut.

  The chart shows savings to consumers as well as the cost to PennDOT.

            30 cents       20 cents       10 cents       5 cents

  4 mos.    $660 million   $440 m         $220 m         $110 m
            $66/person     $44/person     $22/person     $11/person

  3 mos.    $495 m         $330 m         $165 m         $83 m
            $50/person     $33/person     $17/person     $8/person

  2 mos.    $330 m         $220 m         $110 m         $65 m
            $33/person     $22/person     $11/person     $6/person

  1 mo.     $165 m         $110 m         $55 m          $27 m
            $16/person     $11/person     $5/person      $3/person