Governor McKee Seeks Reduction in Gas Tax
Governor McKee is joined by state leaders and Pier Cleaners to highlight his FY 27 budget proposal to repeal the two-cent gas tax implemented by the General Assembly last year.
Governor’s recommended FY 27 budget repeals last year’s gas tax increase approved by the General Assembly
WAKEFIELD, RI — As part of his Affordability for All agenda, Governor Dan McKee took his call for a reduced gasoline tax to the business community today during a press conference at Wakefield’s Pier Cleaners. By repealing the two-cent increase in the RI gas tax proposed and approved last year by the General Assembly, he would save Rhode Islanders an estimated $9 million per year.
“Last year, I chose not to sign the budget presented to me by the General Assembly due to its unnecessary cost increases on taxpayers, including an increase in the state gasoline tax,” said Governor McKee. “Now, residents and businesses are struggling even more with the rising costs of gas.”
“My Affordability for All agenda focuses not on outside factors outside of our immediate control—such as the War on Iran—but on areas we can control, including reducing the state gas tax, eliminating the state social security tax, and addressing the portion of energy bills that represent state taxes and programs.”
As part of the speaking program, Larry Fish, owner of the Pier Cleaners businesses, praised the governor for “giving and not taking” when it comes to small businesses. Fifty percent of Fish’s multistore business is based on laundry pick-up and delivery services. Last year, he spent approximately $60,000 on gasoline alone.
Jim Bennett, President and CEO of RI Commerce Corporation, talked about the importance of helping small businesses, especially during turbulent times. “Commerce supports efforts that help reduce the cost burden on businesses,” said Bennett. “Governor McKee’s proposed reduction of the gas tax is a meaningful step toward lowering operating expenses and strengthening Rhode Island’s business climate.”
Jane Cole, Interim Director of the RI Department of Revenue, pointed out that the proposed reduction in gas tax would not negatively impact any of the programs relying on its revenue, explaining, “In December 2025, the state paid off Motor Fuel bonds that had been funded with $0.02 of the existing gas tax. With that debt paid off, the state won’t feel a budgetary shortfall by reducing the tax.”
