I am pleased to announce the New York State Legislature has passed legislation providing New Yorkers with relief from soaring gas prices and put an end to unrestricted windfall profits on the backs of hardworking taxpayers.

The bill caps the State sales taxes on gas at 8 cents per gallon, effectively freezing the tax at the $2 per gallon rate. This tax cap will save New Yorkers as much as $450 million annually at the pump.

The state currently collects an average of 12 cents in sales taxes on a gallon of gas at current prices. The 8 cent cap would be reduced proportionately should gas prices fall below $2 per gallon.

The cap on the state sales tax on gas went into effect June 1.

The measure requires service station owners pass along the savings to consumers, and any stations that do not comply can face a fine up to $5,000 per incident, per day.

I know gas prices remain high. In the absence of a comprehensive federal energy policy, the state, in its limited role, must do everything it can do provide our residents with relief at the pump. This cap will provide some assistance to all New Yorkers.

Kemp Hannon

New York State Senator