Legislators came to a compromise on the state budget. Their compromise includes complete removal of the oil franchise tax from the budget!  This means no additional gas tax or “assessment” will be applied to the price of motor vehicle fuel. 

You may recall the Assembly made modifications in their version of the budget which removed the anti-pass through provision and included a 2% assessment  motor vehicle fuel. The Senate passed a version of the state budget that did not include the Oil Franchise Tax.   The Governor’s original proposal included a 3% assessment on every gallon of fuel sold in Wisconsin and forbade oil companies from passing on the tax. If his version of the budget had passed, the Oil Franchise Tax would have been legally challenged, would have created fuel supply issues and would have resulted in a new tax collection method to be implemented.

A history of the Oil Franchise Fee debate

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