McDonough Joins Colleagues in Calling for Summertime Tax Break on Gasoline and Diesel Fuel
May 20, 2004
State Assemblyman David G. McDonough (R,C,I-Merrick) and his Assembly Minority colleagues were joined by the president of the New York State Association of Convenience Stores and the New York State Motor Truck Association to call for a tax break that would lower prices for gasoline and diesel fuel during the summer months. "Skyrocketing gas prices not only affect individual consumers but, during the summer months, the businesses and attractions that depend on tourists enjoying their vacation time," said Assemblyman McDonough. "We need to provide every opportunity for New Yorkers and visitors to enjoy the many great destinations throughout the state." Under the provisions of the proposal, the state would suspend its 4.25 percent sales tax on gasoline and diesel fuel from the beginning of Memorial Day weekend to the end of Labor Day weekend. The tax break would save consumers $143 million in fuel taxes during the summer months. Additionally, local governments would also have the option to suspend their portion of the sales tax, increasing the potential savings to motorists. Assemblyman McDonough noted that the statewide average for a gallon of gasoline rose 11 cents for the week ending May 10 and nearly 10 cents for the week ending May 17, with the average price of a gallon of gasoline costing New York motorists $2.12. This is 50 cents more per gallon than a year ago at this time. At 29.65 cents a gallon, New York has the third-highest state gasoline tax rate in the nation. When added to the federally imposed 18.4 cents a gallon tax, consumers in New York pay 48.05 cents per gallon in taxes. When the 4.25 percent sales tax is added, increasing the cost per gallon between 10 and 12 cents, the total tax New York motorists pay is nearly 60 cents per gallon.