Assemblywoman Aileen Gunther (D-Forestburgh) announced the Assembly and Senate reached a bipartisan legislative agreement on a plan to provide New Yorkers with relief from high gas prices by capping and reducing the State and local sales tax on gasoline.

“Working families and businesses are feeling the effects of a record increase in gas prices,” Gunther said. “Capping the state sales tax will bring New Yorkers much needed relief.”

The agreement would cap the local sales tax on gas at 8 cents per gallon freezing the tax at the $2 per gallon rate. The cap will save New Yorkers an estimated $450 million annually at the pump. The gas tax cap plan would take effect on June 1st and allows local governments to opt in and match the state savings.

More specifics of the Legislature’s gas plan include:

• Requiring that service station owners pass along the savings to consumers;
• Making the state Commissioner of Taxation and Finance, in conjunction with chair of the state Consumer Protection Board, responsible for enforcing the gas cap; and
• Fining gas stations up to $5,000 per incident, per day, if they neglect to pass savings on to consumers.

“Capping the sales tax on gas is a good first step,” Gunther said. “I will also work to further protect consumers by instituting a windfall profit tax on oil companies who have posted record profits this year, as well as tough penalties for price gouging and market manipulation.”