The New York State Senate passed a bill today, S5968, sponsored by Senator Robach that would place a cap on the State and local sales taxes on gasoline, saving consumers about $240 million annually.
Specifically, this legislation would cap the State and local sales tax on gasoline at a taxable value of $2 per gallon. The cap would save motorists an estimated $120 million annually in State sales taxes. If all localities participate and gas prices stay at about $2.60 per gallon, the plan would generate another $120 million in savings for a total of $240 million.
"This bill would help keep money where it belongs, in the pockets of working men and women and those on fixed incomes" stated Senator Robach. "It is important that the Legislature take appropriate steps to lessen the tax burden on our residents as they continue to battle the rising costs in energy and this legislation is a great first move."
This bill was one of several passed today by the New York State Senate aimed at combating the ongoing energy crisis. In addition to capping the State taxes on gasoline, the Senate acted on an energy plan that would: provide a $350 million refundable tax credit that would help 386,000 eligible small businesses across New York State afford the rising cost of energy; build on the recent $100 million increase in the Home Energy Assistance Program by providing heating assistance to more senior citizens; and, establish a variety of tax credits to encourage energy conservation and development of alternative energy sources to lessen our dependency on foreign oil.
"I am happy that the Senate recognizes the impact that the energy crisis is having in our community" Senator Robach continued. "I urge the Assembly to act swiftly on this entire energy package to bring much needed relief to the residents of Monroe County and all New Yorkers."
This bill, along with the entire Senate energy package, now awaits action by the Assembly.