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Pain at the pump

Lawmakers discuss ways to address price increases

By Derek Kirk
Posted 6/21/22

SULLIVAN – In an effort to combat the continuously rising prices at the gas pump all throughout New York State, Governor Hochul announced on June 1st the suspension of certain taxes on motor …

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Pain at the pump

Lawmakers discuss ways to address price increases

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SULLIVAN – In an effort to combat the continuously rising prices at the gas pump all throughout New York State, Governor Hochul announced on June 1st the suspension of certain taxes on motor fuel and diesel motor fuel, with 25 counties following suit with local sales tax cap - not including Sullivan.

Delaware, Dutchess, Erie, Monroe, Putnam, Rockland, Saratoga, Schenectady, Seneca, Ulster, Wayne and Yates counties will collect tax only on the first $2 charged per gallon of gas and diesel.

Allegany, Broome, Cattaraugus, Chautauqua, Jefferson, Livingston, Nassau, Niagara, Oneida, Onondaga, Oswego, Suffolk and Westchester counties will collect tax only on the first $3 charged per gallon of gas and diesel.

With the State’s sales tax on gasoline being capped at two dollars, the savings equate to around sixteen cents per gallon, and is expected by the State to provide more than $600 million in relief.

“Fuel prices have surged in recent months, hurting working families and small businesses the most, and it is crucial that we provide New Yorkers relief,” Governor Hochul said. “By suspending certain fuel taxes for the next seven months, New York is providing some $609 million in direct relief to New Yorkers - a critical lifeline for those who need it most.”

In the hopes of joining the other 25 counties in a local effort to support people at the pump, Representative of the 100th Assembly District Assemblywoman Aileen Gunther called for Sullivan County to join others in instituting a local tax cap.

“Just across the border in Pike County, PA, gas prices are around twenty cents higher than they are here in Sullivan County,” Gunther said in a statement on June 16. “So we’re seeing that the state’s action on gas taxes has worked. It’s important that Sullivan County follow suit to help our residents save further.”

Gunther went on to say, “Twenty-five counties have opted-in to temporarily establish a cap on their gas tax, including two of Sullivan County’s neighbors. Delaware and Ulster counties have limited collection to the first two dollars of each gallon sold.”

Sullivan County Legislature Chairman Robert Doherty responded to Assemblywoman Gunther’s call.

“It is unfortunate that the Assemblywoman does not understand that we are a sales tax-based economy. By cutting that sales tax – even for a temporary period – we are cutting critical revenues during our busiest time of year, which will most assuredly lead to financial hardships for the rest of the year,” Doherty said.

“These revenues go towards providing services and programs that our taxpayers rely on. Exchanging those for short-term savings is shortsighted and a knee-jerk reaction that will ultimately cost taxpayers far more than a few cents at the pump. These challenging times demand fiscal responsibility, not election-year politics.”

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