MAY 2008

ERIE COUNTY NEEDS A SUMMER GAS TAX HOLIDAY

Gasoline prices are on the rise again, setting record highs on a daily basis. Higher gasoline prices not only affect us directly by how much we are able or willing to drive, but also affects us indirectly on items such as food, due to increased transportation costs. Higher gasoline prices have hit the wallets of hardworking taxpayers, families and local businesses hard.

Government can and should do something to relieve the burden of high gas prices. We can suspend the collection of sales tax on gasoline for the summer. The New York State Senate has introduced a measure to suspend the collection of the state's share of sales tax for the summer and allowed counties throughout the state to do the same. A couple of Presidential candidates have also suggested suspending collection of federal taxes on gasoline.

I have introduced a measure in the County Legislature to suspend the collection of Erie County's share of sales tax on gasoline and diesel motor fuel for the summer. Based on today's prices, suspending the collection of Erie County's share would result in a savings of 18 cents per gallon. If all governments suspend the collection of gas taxes, the savings would be 65 cents per gallon.

Whether we enact my resolution suspending sales tax on gas for the summer, or my resolution from two years ago suspending sales tax on gas over $2.00 per gallon, or any other proposal, the most important thing is for us to work together to pass legislation to relieve the strain on the family budget.

Prices for gasoline have been higher than we anticipated when preparing the 2008 County budget. As such, there has been an unanticipated windfall in sales tax collections for Erie County. By suspending collection of the county's share of sales tax on gasoline, we can keep money where it belongs, in the pockets of county taxpayers.

Suspending collection of taxes on gasoline will help relieve the financial burden from which we are suffering. It is the right thing to do. I understand the effect that skyrocketing gasoline prices have on the budgets of middle-class families. That is why two years ago this month I introduced legislation to cap sales tax on gasoline above $2.00 per gallon. If that measure had passed, hardworking taxpayers would be paying 8 cents less per gallon at the pumps today. We now have another opportunity to provide significant and immediate help to all motorists.

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