“New York State has the highest taxes on gasoline in the country and the state is receiving a windfall in sales tax revenue with the recent dramatic increases in the price of gas,” said Oaks. “Under our plan, there would be immediate relief for motorists at the pumps by eliminating the state sales tax on gas over $2 per gallon. If the local sales tax was also capped, this would immediately mean an 8 cent savings on a gallon of gas.”
The Assembly minority plan also calls for development of the Alternative Fuel Incentive Fund, dedicated to researching, developing and using alternative and renewable energy fuels.
“I am pleased that part of our plan focuses on alternatives to traditional fuels to give options to consumers,” concluded Oaks. “Taxes collected on the second dollar of each gallon pumped would be used to help develop these alternative renewable fuels that ultimately can reduce American’s dependence on foreign oil. Not only will this help to ease the price New Yorkers pay to travel, but it will also help area farmers as these new fuels are made from the products they grow.”
The State Senate has already passed a bill to cap the state sales tax at $2.00 per gallon. An Assembly minority-sponsored measure to establish the cap was narrowly defeated in mid-April in the Assembly by a vote of 77 to 64. “It is our plan to put our proposal forward for a vote again and again until we get the tax relief we need,” said Oaks.