Pumping the Brakes on Gas Tax

Pumping the Brakes on Gas Tax

By now we have all seen the scenes on TV and social media of the outrageous and disheartening invasion of Ukraine by Russia to overthrow their democratically elected government. Despite unfolding a world away, this conflict has had a detrimental ripple effect on oil supply and prices worldwide that are being compounded by skyrocketing, record-high, inflation.

This week some relief came for Rockland County families, thanks to a sales tax cap on motor fuel, at $2 a gallon going into effect June 1.
These actions by the county government are intended to aid consumers and the Rockland County Office of Consumer Protection is stepping up local patrols to ensure these savings are being factored into pricing at the pump.

Inspectors from the Rockland County Office of Consumer Protection recently visited the Gulf Fuel Station located at 157 Route 9w in Stony Point to learn how the business is complying with the mandated fuel sales tax reductions. The business manager explained that fuel prices can fluctuate with each delivery he receives but he utilizes an offsite accounting firm to calculate all pricing per retail gallon factoring all relevant taxes, including the tax savings mandated by the state and county.

While gas prices are fluid, my administration expects all 66 Fuel Stations in Rockland County comply with reducing their tax collection at the pump.

We hope this temporary stopgap measure provides some relief to families who are now struggling with skyrocketing inflation and gas prices, but we know it’s not enough. The federal government needs to step up urgently, take responsibility, and tackle the real issues driving up costs across the board for families.

The 2022 New York State Budget provides a suspension of the state excise and sales tax, providing a combined 16 cents per gallon savings to consumers, effective as of this month through the end of this year.

To provide additional savings to Rockland County families, my administration and the Rockland County Legislature capped the local sales tax on motor fuel at $2 per gallon effective June 1, through February 28, 2023, two months longer than New York State’s tax suspensions.
At the current price of gasoline, this cap will generate approximately 8 cents in additional savings for consumers which, when coupled with state tax suspensions, should result in an estimated 24 cents in relief at the gas pump starting this summer.

Consumers should be aware that these savings only impact taxes and not wholesale pricing for gasoline which is likely to continue rising due to several factors including increased prices in crude oil and higher demand by consumers.

The bottom line is the government should never profiteer off families feeling the duress of a strained economy and we hope this move provides some much-needed relief to families struggling now more than ever.

Tags: taxes

Related posts