New York State currently charges the highest taxes on gasoline in the nation, so the state should suspend the sales tax on gasoline and diesel fuel to help relieve motorists of that burden for the summer. The lawmaker joined her Assembly Republican colleagues in calling for the suspension of the state sales tax on gasoline and diesel fuel from the Memorial Day through Labor Day weekends.
Currently, according to the American Automobile Association, New Yorkers pay approximately $1.69 a gallon statewide compared to the rest of the nation, where gas costs approximately $1.63.
Suspension of the sales tax on gasoline and diesel fuel would save motorists an estimated $132 million.
The proposal also called for municipalities to be given the option to suspend the local sales tax levied on gasoline and diesel fuel, which could amount to an additional $132 million savings.
The state sales tax on gasoline is a factor that can be controlled at a time when many uncontrollable factors are contributing to high prices. Motorists are being taxed on a tax, because the sales tax is levied on the price of gasoline after all other taxes and fees are tacked on.
The state collects other taxes and fees on top of the price of a gallon of gasoline, including the motor fuel tax, the petroleum business tax, petroleum testing fee, and the oil spill fund fee.
Additionally, the rising price of gasoline could affect the state's $37.4 billion tourism industry, which generates nearly 44 percent of its income between the end of May and the beginning of September. Income from tourism is a major contributor to our region's overall economy, and if the price of gasoline does not decrease, we could experience problems getting people to travel to our area.
With the price for a gallon of gasoline threatening to cross the $2 threshold, many families will be less likely to take driving trips due to the cost of fueling their cars. The state should take immediate action to suspend the sales on gasoline and diesel fuel.