Gov. Dan McKee is revving up his push to cut Rhode Island’s gas tax — and he’s taking the pitch straight to small businesses feeling the squeeze at the pump.
Standing at a Wakefield dry cleaner, McKee called on lawmakers to roll back a 2-cent gas tax hike approved last year, a move he says would save drivers about $9 million annually.
“Residents and businesses are struggling even more with the rising costs of gas,” McKee said, noting he refused to sign last year’s budget over what he called unnecessary tax increases.
The proposal is part of his broader “Affordability for All” agenda, which also targets eliminating the state tax on Social Security and trimming energy-related costs tied to state programs.
Pier Cleaners Dry Cleaning owner Larry Fish didn’t mince words, backing the governor’s plan as a win for small operators. His laundry business — half of which relies on pickup and delivery — burned through roughly $60,000 in gas last year alone.
“This is about giving and not taking,” Fish said.
State officials insist the tax cut won’t blow a hole in the budget. According to revenue chief Jane Cole, Rhode Island paid off motor fuel bonds in late 2025 that were funded by the 2-cent tax — clearing the way for a rollback without cutting programs.
Rhode Island Commerce Corporation CEO Jim Bennett also threw his support behind the move, calling it a “meaningful step” to ease pressure on businesses navigating a shaky economy.
Now the fight heads back to the State House, where lawmakers will decide whether to hit the brakes — or give taxpayers a break.
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