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Gas Tax Holiday on Horizon

Thu, 03/17/2022 - 10:21
New Yorkers may soon feel some relief from escalating gas prices, which recently topped $5 a gallon in some places, like this station in Amagansett.
Durell Godfrey

Drivers in New York State may soon be paying around 46 to 50 cents less per gallon for gasoline. A bill making its way through the State Legislature as part of the state’s budget could provide that relief in the form of a temporary gas-tax holiday through the end of 2022.

Such an action, combined with recent news from oil-market reports that prices are likely going to come down anyway, has the potential to relieve steep rates of inflation that are impacting other necessities as well. In some parts of the South Fork, gas has topped $5 per gallon over the last few weeks.

“There’s a lot of interest, and it’s bipartisan,” Assemblyman Fred W. Thiele said by phone on Tuesday. “I do support this. The gas tax is a very regressive tax that falls disproportionately on the working class and middle-income people. I think they could use a break, and this seems like a good time for it.”

Lawmakers must adopt a budget by April 1. If the gas tax bill were to be enacted, Mr. Thiele said it would save consumers about $680 million statewide. The state would make up for the lost income via its $9 billion budget surplus, which came about as the Covid-19 pandemic eased up and the economy began recovering.

“The economy bounced back well — better than we thought it would,” Mr. Thiele said.

The state gas tax also helps pay for highway improvements, so part of the surplus would go toward making that whole, “which is important, given the state of our roads,” the assemblyman said. Surpluses are best suited to offset one-time expenses rather than recurring costs, he added.

The proposed gas-tax holiday would impact only the state’s levy; county taxes and sales taxes would still be in effect unless the Suffolk Legislature takes corresponding action.

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