Crouch: Lawmakers Agree To Cap State Sales Tax On Gasoline

Legislation awaits Gov. Pataki’s approval
May 15, 2006

Assemblyman Cliff Crouch (R-Guilford) has announced the New York State Legislature reached a bi-partisan agreement to cap the state tax on gasoline, saving motorists four cents per gallon. The agreement awaits the governor’s approval, who has yet to publicly state his support.

“I, alongside Leader Tedisco and my colleagues in the Assembly minority conference have fought vigorously to help lift the burden of rising gas prices,” said Crouch. “In a rural district such as mine, it is important that we, as legislators, take immediate action to combat rising gas prices as the summer tourism season approaches. Many of my constituents are forced to drive hundreds of miles a week for work and this legislation will provide significant relief until a permanent long-term solution can be found.”

Crouch said the gas tax cap measure that passed the Senate last month was defeated in the Assembly by a vote of 77-64, with all 77 votes coming from Assembly majority.

The new agreement caps gasoline taxes at eight cents per gallon, equal to what the state collects on $2 per gallon. Crouch added that local taxes on gasoline still range from 12 to 15 cents per gallon across the state.

The bill, to be voted on this week, is estimated to cost the state $200 million. Counties have the option to cap the local share of the sales tax on gasoline, further reducing the cost per gallon.

“I continue to urge my constituents to reach out to their federal representatives, as I have done, to urge them to come up with a permanent solution to gas prices,” concluded Crouch. “There is only so much that can be done at the state level, but we have certainly made large strides towards combating record prices.”

If passed, the cap would take effect June 1st.