ASSEMBLY SHOULD PASS SENATE ENERGY TAX CUT PLAN TO PROVIDE IMMEDIATE PRICE RELIEF

Proposal Would Lower Gasoline Prices, Electricity Costs

Tuesday, May 22, 2001

Gasoline prices have reached an all-time high in New York State and the cost of electricity is on the rise. New Yorkers face a long, hot summer and are hoping for immediate relief in the form of reduced prices at the gas pump and lower electricity costs to help keep them cool. And while New Yorkers are paying more, the Assembly Democrats are doing nothing.

The Senate Majority�s $885 million energy tax cut package could immediately reduce the cost of gasoline by almost 14 cents per gallon and save New Yorkers $175 million on electricity, but only if the Assembly acts now. Unfortunately, the inaction of Speaker Silver and his Assembly Democrats will force New Yorkers to needlessly sweat out high energy prices.

Last week the Senate approved legislation to immediately abolish the state�s 4 percent sales tax on gasoline and authorize local governments to eliminate the local share of the sales tax. With the average price of gasoline at $1.74 per gallon, motorists could save almost 14 cents per gallon immediately if both the state and local sales taxes were eliminated.

In addition, the Senate energy tax cut package would eliminate the Gross Receipts Tax on home energy. This would reduce electric bills by $175 million at a time of year when people are running fans, air conditioners and other cooling devices. The Senate�s $485 million home energy savings package would also reduce cooling and heating costs through conservation by eliminating the state sales tax on insulation, caulking, thermal windows, and furnaces.

The only thing standing in the way of these immediate energy savings is Speaker Silver and the Assembly Democrats. Unless they act now to approve the Senate Majority�s tax cut plan, New Yorkers will continue to pay more.

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