June, 2006
ERIE COUNTY SHOULD CAP SALES TAX ON GASOLINE

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 $2.92 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.

Recently, the New York State Assembly, Senate and Governor Pataki approved legislation that provided a tax exemption for motor fuel and diesel motor fuel in excess of $2.00 per gallon effective June 1, 2006.

Erie County should also cut its sales tax on gas and that is why on May 25, 2006 I introduced legislation calling for a cap in Erie County on the local sales tax on gasoline at $2.00 per gallon. Counties, by local law, ordinance or resolution, may elect to cap its sales tax on the retail sale of fuel at $2.00 per gallon.

Wally Smith, Vice President of AAA Western and Central New York supported my efforts to cut the county sales tax on gasoline by stating, "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. 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."

We need to opt into the State law and enact a resolution in Erie County that would cap our local sales tax on gasoline and provide motorists with some relief. We should join Oneida, Jefferson and Onondaga counties that have already moved to adopt their own local gas sales tax cap on prices above $2.00 per gallon. Local service station owners in suburban and rural communities are feeling the pain too as consumers cut back on the purchase of gasoline.

The legislation I have introduced would not only reduce the price of gas at the pump, but it's also a matter of fairness. The county is receiving a windfall due to extraordinary high gas prices. State and local governments should not reap a revenue windfall for sales tax revenues at the expense of residents. This money should be put back in the wallets of the consumers.

I look to my colleagues in the Legislature to support this legislation and cap the sales tax on gasoline in Erie County and provide relief to our residents.