The New York Senate passed a measure this week during a one-day special session designed to ease the spiraling cost of motor fuels in the state.
The Republican-led chamber on Tuesday, Sept. 20, approved a cut in the sales tax on gasoline and diesel.
“The state has been profiting from the rise in gas prices because higher prices mean higher gas taxes,” Senate Majority Leader Joseph Bruno said in a written statement. “The Senate plan would cap the tax, reduce the cost of gas at the pump and limit the impact on consumers’ wallets.”
But the fate of the measure – S5968 – is unclear. The Democrat-controlled Assembly is not at the Capitol and may not be willing to work out a compromise on fuel costs with the Senate and Gov. George Pataki.
In addition, Pataki, a Republican, has his own ideas, which don’t match the Senate’s proposal.
The Senate’s sales tax cap calls for the state and localities to add sales tax to only the first $2 worth of a gallon of gasoline or diesel fuel. With the price at the pump about $3 a gallon throughout most of New York, that would mean a savings of about 8 cents a gallon. It would cost the state and local governments about $200 million annually.
Bruno, R-Brunswick, said counties could opt out of the tax.
Senators also passed a bill – S5969 – to prohibit fueling stations from raising the price of fuel more than once a day. Any station owner found in violation would be subject to a $1,000 fine per occurrence.