May 24, 2006
Erie County Cap on Tax For Motor Fuel and Diesel Motor Fuel

Today we are introducing a resolution to cap the local sales tax at $2.00 per gallon on motor fuel and diesel motor fuel in Erie County, in relation to requiring retail dealers of motor fuel and diesel motor fuel to reduce prices for fuel.

Consumers in Erie County are having a difficult time affording filling up their gas tanks and need some relief from high gas prices. The average price of gasoline in Erie County is $2.97 per gallon and it is predicted that summer prices will outpace last year's local record of $3.33 per gallon hitting the wallets of families and local businesses.

The New York State Assembly and New York State Senate recently approved legislation that would provide a tax exemption for motor fuel and diesel motor fuel on that portion of the receipt that is in excess of $2.00 per gallon effective June 1, 2006. Erie County should do the same.

Local municipalities, by local law, ordinance or resolution, may elect that its sales and compensating use taxes, in regard to the retail sale of motor fuel and diesel motor fuel be capped at $2.00 per gallon.

"We need to opt into the State law and enact a local law or resolution in Erie County that would cap our local sales tax at $2.00 per gallon and provide motorists with some relief," stated Legislator Michael Ranzenhofer. "State and local governments should not reap a revenue windfall for sales tax revenues at the expense of residents," added Ranzenhofer.

Legislator Barry Weinstein said, "Month after month, increasing gas prices are taking a bigger bite out of families wallets. This cap on local sales tax will help families save money."

"AAA members were encouraged by the New York State Legislature's and Governor Pataki's decision to cap the 4% New York State sales tax on gasoline at the $2.00 per gallon level," stated Wally Smith, Vice President of AAA Western and Central New York. "Our AAA members clearly spoke out, with over 27,000 signatures of support in our petition campaign to eliminate the state sales tax on gasoline. We encourage the Erie County Legislature to follow New York State's lead and also cap the local sales tax on gasoline at the $2.00 per gallon level. This is a fair and equitable action since the County is receiving a windfall due to extraordinary high gas prices, and secondly, revenues generated are not dedicated to transportation purposes," he added.

Some local service station owners are also pushing for relief in an effort to help their bottom lines and motorists. Bob Mason, owner of Bob Mason's Service Center said, "Erie County must follow New York State's lead and cap the sales tax. County, State and Federal taxes are killing our businesses."