Golden Legislation To Suspend Fuel Oil Tax For Residential Heating Gains Support Of City Council

Martin J. Golden

October 17, 2005

Brooklyn- State Senator Martin J. Golden (R-C-I, Brooklyn) today is announcing that the New York City Council has adopted a resolution in support of his legislation, S.5984, which would suspend the City’s portion of the tax imposed on fuel oil and natural gas used for residential heating purposes, which is 4%, during the months of December, January and February.

Senator Golden stated, "I applaud this vote of the New York City Council and thank them for joining with me in support of this legislation that has the potential to provide real relief to New Yorkers this winter. The cost of home heating fuel oil and natural gas is projected to rise as significantly over the coming winter months, the same time that demand is highest and need is greatest. We must take action now to help alleviate some of this upcoming financial hardship."

Golden continued, "Now that the City Council has acted, we are one step closer to suspending this local tax. Throughout this summer, New Yorkers were faced with the rising cost of gasoline to fuel their cars. Now, this winter, can we expect New Yorkers to again be faced with such high home heating costs? We stand to lose New Yorkers if costs continue to rise to such levels. This tax relief is a must for New York this winter."

According to a New York State Energy Research and Development Authority Weekly Heating Fuels Report, published on September 5, 2005, heating oil, propane and kerosene prices in New York State have reached historic highs and the weekly average home heating oil prices has increased by over 50% compare to the exact same time last year. These dramatic price increases are most likely attributable to recent events including capacity problems, speculation behind higher oil prices, and the devastation of a number of tropical storms and hurricanes, most notably Hurricane Katrina, to the U.S. Gulf region’s oil-producing infrastructure.