County Dems Propose Eliminating Sales Tax On Gas
While New York state is suspending part of its gas tax for the remainder of 2022, some county leaders are calling for Chautauqua to do the same.
In a news release, the county’s four Democratic legislators announced they are proposing to eliminate the county sales tax on gasoline from June 1 to the end of the year. The legislators, Susan Parker of Fredonia, Robert Bankoski of Dunkirk, Paul Whitford of Jamestown, and Billy Torres of Jamestown are proposing the tax relief in keeping with Gov. Kathy Hochul’s recently approved budget.
Hochul gained legislative approval to remove the state’s 8 cents per gallon motor fuel tax and the state’s 8 cents per gallon sales tax. The legislation allows counties to join the state and remove the counties’ share of the sales tax, which is 4% or about 8 cents per gallon.
“With families in our county concerned about inflation and the huge run-up in gasoline prices, the least that we can do is remove this additional tax expense for our residents and businesses,” Parker said. “The sales tax is a regressive tax. It takes a larger bite out of middle- and lower-income family budgets and is especially significant when paid on absolute necessities such as gasoline. We have this opportunity to help our residents and business in this small way. It’s the right thing for us to do.”
Bankoski said the county has the means to provide this relief. “The county has increased its sales tax collections to historic levels and has a large sales tax surplus presently,” he said. He noted that the county’s sales tax surplus as of the legislature’s last budget report totaled $8.5 million.
The legislators are working with the county’s attorney’s office and hope to have their colleagues act immediately to remove the county’s sales tax to allow gas retailers and the county Finance Department time to make the change to benefit residents and businesses beginning June 1.
On Saturday as the state budget was put in place, Hochul stated that to tackle the high cost of fuel, which has surged in recent months as a result of the war in Ukraine, New York will suspend the state sales tax imposed on fuel, the motor fuel tax, and the metropolitan commuter transportation district sales tax imposed on gasoline and highway diesel from June through December 2022, providing an estimated $585 million in relief for working families and businesses statewide. The state will make roads and bridges and public transit entities such as the Metropolitan Transportation Authority and local transit systems throughout the state whole by replacing estimated lost tax revenue using the state general fund. Additionally, localities would have the option to cap the price their applicable local sales tax rate is imposed on at $4 per gallon.
State Sen. George Borrello feels the state didn’t go far enough in lifting the gas tax. “Full exemption of the gas tax would save New York motorists 46 cents per gallon, a noticeable savings. Instead, the Democrat majorities included a partial, 16-cent suspension, which is a token effort, but too small to make a measurable difference,” he said.