RESOLUTION TO BE SUBMITTED BY LEGISLATOR RANZENHOFER
ERIE COUNTY CAP ON TAX FOR MOTOR FUEL AND DIESEL MOTOR FUEL

WHEREAS, consumers in Erie County are having a difficult time affording filling up their automobile gas tanks month after month, and

WHEREAS, the average price of gasoline in Erie County is $2.97 per gallon and is predicted that summer prices will outpace last year's local record of $3.33 per gallon, and

WHEREAS, the price of gasoline is having a big impact on the bottom lines of local businesses and negatively effecting consumer's wallets and businesses, and

WHEREAS, due to the increases of the retail price of gasoline, New York State and localities have seen an unexpected windfall for sales tax revenues at the expense of taxpayers, and

WHEREAS, the New York State Assembly and New York State Senate have 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, and

WHEREAS, with the passage of New York State Assembly Bill A.11331 and New York State Senate Bill S.7909 the tax collected by New York State will be capped at 8 cents per gallon, and

WHEREAS, Erie County collects between 12 cents and 15 cents per gallon from local sales taxes, and

WHEREAS, under the New York State legislation, local governments have the option of passing a law to cap local sales tax at $2.00 per gallon, and

WHEREAS, the legislative body of a municipality, 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, shall be computed, as determined by the New York State Commissioner of Taxation and Finance, at a rate of cents per gallon, rounded to the nearest cent, equal to two or three dollars, as determined by the municipality, multiplied by the percentage rate of such taxes within the municipality, and

WHEREAS, a municipality may make election to cap local sales tax by providing a certified copy of local law, ordinance or resolution to the New York State Commissioner of Taxation and Finance on or before June 16, 2006 and would become effective July 1, 2006, and

WHEREAS, service station owners are required by law to pass on these savings to consumers and provide motorists with some relief, and

NOW, THEREFORE BE IT

RESOLVED, that this legislative body wishes to cap the local sales tax at $2.00 per gallon on motor fuel and diesel motor fuel in Erie County and amend the tax law and general business law, in relation to requiring retail dealers of motor fuel and diesel motor fuel to reduce prices for fuel, and be it further

RESOLVED, that the tax relief provided in this legislation will have a positive impact and improve the everyday life of the residents and businesses in Erie County, and be it further

RESOLVED, that a certified copy of this resolution be sent to the WNY State Legislative Delegation, Governor George E. Pataki, County Executive Joel A. Giambra, Erie County Budget Director Kenneth Vetter, Erie County Comptroller Mark Poloncarz and the Erie County Fiscal Stability Authority.

Fiscal Impact: Positive for the residents of Erie County