Drivers likely to see some savings at pump with fuel tax cut
In a Wednesday statement, Gov. Kathy Hochul noted the beginning of a suspension of certain taxes on motor fuel and diesel motor fuel took effect. The motor fuel excise tax, state sales tax, and …
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Drivers likely to see some savings at pump with fuel tax cut
In a Wednesday statement, Gov. Kathy Hochul noted the beginning of a suspension of certain taxes on motor fuel and diesel motor fuel took effect.
The motor fuel excise tax, state sales tax, and Metropolitan Commuter Transportation District sales tax on motor fuel and diesel motor fuel will remain suspended through the end of the year.
This fuel taxes suspension will provide a reduction of at least $0.16 per gallon statewide, with some counties providing additional savings per gallon. This program was authorized as part of the state’s 2023 enacted budget.
“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,” Hochul said in a statement.
“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. At a time when families are struggling because of economic headwinds and inflation, we will continue to take bold action to reduce the economic burden on New Yorkers and get money back in their pockets,” the governor continued.
Local move
Locally, in April, a measure passed by Oneida County lawmakers, made a cap a reality within county limits in addition to the state cap. The county’s gas sales tax is capped at $3 per gallon, saving motorists a total of more than 20 cents per gallon when combined with a state cap in place. (Read a Daily Sentinel article on the move here: https://bit.ly/3m50EN6)
While the state cap remains in effect until the end of the year, the Oneida County measure expires on November 30.
In a Wednesday statement from Hochul’s office, Oneida County Executive Anthony J. Picente Jr. stated, “Skyrocketing inflation is having a devastating impact on the budgets of working families and people need help. Together, with the Board of Legislators, we capped our county’s gas sales tax at $3 per gallon, and combined with the state’s gas tax suspension, that will result in a current savings of approximately 25 cents per gallon for our residents. It is our hope that this action will provide some measure of relief to those struggling to make ends meet during these tumultuous economic times.”
Counties contribute
Twenty-five New York counties moved to set temporary caps on the sales tax charged per gallon of gas and diesel.
Beginning Wednesday, 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, regardless of the actual price at the pump.
In addition to Oneida County; Allegany, Broome, Cattaraugus, Chautauqua, Jefferson, Livingston, Nassau, Niagara, Onondaga, Oswego, Suffolk and Westchester counties will collect tax only on the first $3 charged per gallon of gas and diesel, regardless of the pump price.
To view the local sales tax rates on certain motor fuels in counties across the state, visit: https://on.ny.gov/3GCxNJw
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