|
|
 |
|
|
Plan to abolish tax will help drivers strapped by rising prices
Sunday, May 6, 2001
Senate Majority Leader Joseph L. Bruno and members of the Senate Majority today called for an end to New York's state sales tax on gasoline and automotive diesel to help drivers facing summertime hikes that threaten to push fuel prices to $2 or more per gallon.
The plan was unveiled just weeks before the start of the busy summer driving season that begins on Memorial Day and is part of nearly $1 billion in energy tax cuts proposed by the Senate Majority to be included in the state budget.
The Senate Majority plan (S. 2-A) would eliminate the 4 percent state sales tax on gasoline and diesel fuel, meaning savings of up to 8 cents a gallon if gas prices reach $2. At current average prices, it is estimated that the relief would total $400 million for motorists and commuters.
Additional consumer savings would be possible if local and county governments take advantage of an optional plan to similarly abolish their sales taxes on fuel.
"Once again this summer, New Yorkers are facing the highest fuel prices in two decades. Eliminating the sales tax on gas and diesel will provide some relief for motorists and commuters," said Senator Bruno (R-C, Brunswick).
"Higher fuel costs threaten to discourage tourists from exploring communities throughout the state," said Sen. Hugh T. Farley (R-C, Niskayuna). "This plan will ease some of the summertime price hikes to the benefit of commuters, residents and those wishing to visit New York."
The Senate Majority first proposed eliminating the sales tax on gasoline and diesel fuel last summer, but that plan was rejected by Assembly Democrats.
In addition to eliminating the state sales tax on gasoline and diesel fuel, the Senate Majority also proposed additional energy tax cuts to become part of the state budget, including:
$200 million in tax savings by eliminating the state sales tax on home energy conservation products, including caulking, insulation, thermal window, doors, etc.;
Repeal of the Gross Receipts Tax on home energy, saving consumers $175 million a year when fully implemented;
$100 million in relief to low-income New Yorkers to help pay higher energy bills through creation of a new Home Energy Assistance Tax Credit, to be funded with surplus Temporary Assistance for Needy Families funds;
$10 million in savings through elimination of the commercial Petroleum Business Tax which typically is passed along to consumers by manufacturers and other industry.
[BIOGRAPHY] [DISTRICT MAP] [PHOTO GALLERY] [LEGISLATION] [CONSTITUENT SERVICES] [YOUR OPINION COUNTS] [GUESTBOOK] [PRIVACY POLICY] [SENATE INSIDER] [CONTACT INFO] [HOME/NEWS]