Gas prices go down with state suspending its share of sales tax until Dec. 31

Posted 1 June 2022 at 12:44 pm

Photo by Tom Rivers: The price for regular unleaded gas at the Crosby’s in Albion at routes 31 and 8 is down 16 cents today with the start of the state suspending its share of sales tax.  

Press Release, Gov. Kathy Hochul’s Office

Governor Kathy Hochul today announced the suspension of certain taxes on motor fuel and diesel motor fuel takes effect today. The motor fuel excise tax, State sales tax, and Metropolitan Commuter Transportation District sales tax on motor fuel and diesel motor fuel will remain suspended through the end of the year.

This fuel taxes suspension will provide a reduction of at least $0.16 per gallon statewide, with some counties providing additional savings per gallon.

Editor’s Note: There are 25 counties that are suspending some of the local sales tax. Orleans County isn’t among those offering a sales tax break at the pump.

“Fuel prices have surged in recent months, hurting working families and small businesses the most, and it is crucial that we provide New Yorkers relief,” Governor Hochul said. “At a time when families are struggling because of economic headwinds and inflation, we will continue to take bold action to reduce the economic burden on New Yorkers and get money back in their pockets.”

Counties contribute to additional savings

Twenty-five counties across the State have also taken action to set temporary caps on the sales tax charged per gallon of gas and diesel. This program was authorized as part of the State’s FY 2023 Enacted Budget.

Beginning today, Delaware, Dutchess, Erie, Monroe, Putnam, Rockland, Saratoga, Schenectady, Seneca, Ulster, Wayne and Yates counties will collect tax only on the first $2 charged per gallon of gas and diesel, regardless of the actual price at the pump.

Allegany, Broome, Cattaraugus, Chautauqua, Jefferson, Livingston, Nassau, Niagara, Oneida, Onondaga, Oswego, Suffolk and Westchester counties will collect tax only on the first $3 charged per gallon of gas and diesel, regardless of the actual price at the pump.

These actions will save New Yorkers additional cents per gallon with each customer’s specific savings depending on the local sales tax rate and the difference between the price per gallon and the local cap. You can view the local sales tax rates on certain motor fuels in your county by clicking here.

 Information for distributors, wholesales and retailers

Governor Hochul had previously directed distributors, wholesales, and retailers of motor fuel and highway diesel motor fuel to prepare for the upcoming suspension of these taxes. Those businesses can learn more by clicking here.

Livingston County Board of Supervisors Vice Chairman and Town of Caledonia Supervisor Daniel L. Pangrazio said, “Livingston County relies on the generation of sales tax as part of its operating budget. However, the skyrocketing price of fuel and additional tax generated from that should not come at the expense of our residents. Gasoline sales generate a significant percentage of our overall sales tax collection, so while we struggle with our own rising costs, please know that this measure by your County Board of Supervisors is a call to action to help.”