WPCNR'S CAPITOL DISTRICT DAILY . From Assemblyman Adam T. Bradley. May 15, 2006: Assemblyman Adam Bradley (D-White Plains) announced that the Assembly has passed bipartisan legislation to bring much-needed relief to motorists by reducing and capping state and local sales taxes on gasoline (A.11331).  The bipartisan gas tax legislation would take effect on June 1 for the state sales tax and July 1 for local sales taxes, should local governments pass legislation to cap local sales taxes on gas.

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“As gas prices soar to above $3 a gallon and with the Bush administration unable to implement a plan to mitigate the ever increasing fuel costs, it has left us no choice but to implement a state plan to provide Westchester and all New York residents with relief from high gas prices,” said Bradley.  “New Yorkers should expect an estimated annual savings of $450 million at the pump by capping state and local sales taxes on gas at 8 cents per gallon, which locks in the tax at the $2 per gallon rate.”

According to Bradley, if gas prices should dip below $2 per gallon, the 8-cent cap would be reduced proportionately. For example, with gas prices at $3 per gallon, this agreement would reduce the tax on gas by 4 cents per gallon. 

More specifics of the Legislature’s gas plan include:

·        Requiring that service station owners pass along the savings to consumers;

·        Making the state Commissioner of Taxation and Finance, in conjunction with chair of the state Consumer Protection Board, responsible for enforcing the gas cap; and

·        Fining gas stations up to $5,000 per incident, per day, if they neglect to pass savings on to consumers.

“Record high gas prices have had adverse affects on everything we do, from the cost of going to work and transporting our children to school to the cost of policing our streets and transporting the food we buy at the grocery store. And with the summer travel season upon us, this agreement will provide New Yorkers with immediate relief during the highly traveled summer months,” said Bradley.

While motorists in Westchester and across New York State pay some of the highest gasoline prices in the nation, oil companies are enjoying record profits.  In fact, Exxon Mobile – which is giving its former chairman a $400 million retirement package – recently reported an all-time record first-quarter profit of more than $8 billion.  The White House, home to two former oil company executives, is in no rush to address this serious national issue.

“This gas cap will help New Yorkers deal with the rapid increase in fuel prices, but we need the federal government to come to the table and solve the economic impacts nationwide resulting from this unheralded increase in gas prices,” said Bradley.  “Our families can’t afford to pay skyrocketing fuel prices without some kind of relief and this agreement delivers immediate relief.  I encourage all Westchester motorists to visit www.fueleconomy.gov to locate the most affordable local gasoline prices on any given day.”