Senator Dale M. Volker Announces Agreement On Plan To Reduce Gas Taxes
(ALBANY, NY) State Senator Dale M. Volker (R-I-C, Depew) today announced a legislative agreement to roll back New York's gas tax to provide some relief to strapped motorists faced with rising gas prices. The plan, which will save motorists up to $450 million a year and immediately lower the cost of gasoline in New York by at least four cents per gallon, is expected to be approved next week and takes effect June 1.
Motorists could save even more if county governments roll back their own tax, as authorized under the agreement.
"The State Senate has passed legislation several times over the past few months proposals to reduce the tax burden as it relates to gasoline. It is obvious to everyone who fills up their gas tanks every week that it is draining their expendable incomes and hurting their family finances," said Senator Dale M. Volker. "It was essential that we enact legislation that lessens this tax burden and allows our residents to keep more of their money immediately. Our pain at the pumps should not be the governments gain!"
The joint Senate-Assembly deal caps the state sales tax on gasoline at 8 cents per gallon. Right now, the sales tax is set at a percentage of the price of gasoline, and rises and falls based on the sales price. At $3 a gallon, the state collects 12 cents a gallon in sales tax, and county and other local governments add an additional levy ranging from 12 cents to 15 cents.
The agreement also requires service station owners to pass the savings from the gas cap on to motorists, and sets fines of up to $5,000 per incident for stations that fail to do so.
The Senate and Assembly will continue to discuss proposals to encourage the development and use of alternative sources of energy and encourage energy conservation and the purchase of energy-saving products and materials.