WPCNR'S ADAM IN ALBANY. By Assemblyman Adam T. Bradley, 89th A.D. June 4, 2006: With the new gas tax cap taking effect June 1 for the state sales tax, I urge drivers to keep watch at the pumps. The new law capping the state sales tax on gas also requires that service station owners pass along the savings to consumers. While I’m confident that most owners will do this, people should call my office if they suspect a station isn’t complying.

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As most drivers are painfully aware, gas prices can fluctuate from day to day, making it difficult to gauge what is causing the change. If most stations in the area are dropping their prices but one is not, it could be cause for concern.

This law has some serious ramifications for gas station owners who fail to follow the rules. However, we need to be aware of when the rules are being broken. Gas stations can be fined up to $5,000 per incident, per day, if they neglect to pass savings on to consumers.

The law caps sales taxes on gas at 8 cents per gallon, which locks in the tax at the $2 per gallon rate. For example, with gas prices at $3 per gallon, the cap will reduce the tax on gas by 4 cents per gallon. If gas prices should dip below $2 per gallon, the 8-cent cap would be reduced proportionately.

Fighting for Alternative Fuels

Recognizing the importance of increased alternative fuels use as a part of an effective strategy for the future, I supported legislation that included a plan to increase the distribution of feasible alternatives to gasoline.  Under this bill, the state Thruway Authority and the New York State Energy Research and Development Authority would be required to provide fueling stations every 120 miles along both sides of the Thruway to accommodate vehicles fueled by electricity, propane, hydrogen and ethanol (A.2717).

The Assembly also passed measures to provide consumers with tax credits:

·        for home heating fuel oil that contains biodiesel fuel

·        for the purchase of energy efficient residential home heating systems – the credit would be equal to 50 percent of the purchase and installation costs for the heating systems limited to $500

In the absence of leadership from Washington, we have developed some creative methods to address the energy crisis. I urge the Bush administration to stop doing the bidding of “Big Oil” and to give a helping hand to working families across the United States who need relief from soaring energy costs now. 

Residents with concerns about gas stations failing to pass savings along to motorists can call my office at 686-7335 or send an email to bradlea @assembly.state.ny.us.