Suspension of Certain Taxes on Motor Fuel and Diesel Motor Fuel Extends through December
Initiative to Provide an Estimated $609 Million in Relief for Working Families and Businesses
25 Counties Have Elected to Cap Local Sales Tax per Gallon for More Savings
Governor Kathy Hochul today announced the suspension of certain taxes on motor fuel and diesel motor fuel takes effect today, Wednesday, June 1, 2022. The motor fuel excise tax, State sales tax, and Metropolitan Commuter Transportation District sales tax on motor fuel and diesel motor fuel will remain suspended through the end of the year. This fuel taxes suspension will provide a reduction of at least $0.16 per gallon statewide, with some counties providing additional savings per gallon.
“Fuel prices have surged in recent months, hurting working families and small businesses the most, and it is crucial that we provide New Yorkers relief,” Governor Hochul said. “By suspending certain fuel taxes for the next seven months, New York is providing some $609 million in direct relief to New Yorkers — a critical lifeline for those who need it most. At a time when families are struggling because of economic headwinds and inflation, we will continue to take bold action to reduce the economic burden on New Yorkers and get money back in their pockets.”
Counties Contribute to Additional Savings
Twenty-five counties across the State have also taken action to set temporary caps on the sales tax charged per gallon of gas and diesel. This program was authorized as part of the State’s FY 2023 Enacted Budget.
Beginning today, Delaware, Dutchess, Erie, Monroe, Putnam, Rockland, Saratoga, Schenectady, Ulster, Wayne and Yates counties will collect tax only on the first $2 charged per gallon of gas and diesel, regardless of the actual price at the pump. Seneca County had previously capped its local sales tax in the same manner, and continues to.
Allegany, Broome, Cattaraugus, Chautauqua, Jefferson, Livingston, Nassau, Niagara, Oneida, Onondaga, Oswego, Suffolk and Westchester counties will collect tax only on the first $3 charged per gallon of gas and diesel, regardless of the actual price at the pump.
These actions will save New Yorkers additional cents per gallon with each customer’s specific savings depending on the local sales tax rate and the difference between the price per gallon and the local cap. You can view the local sales tax rates on certain motor fuels in your county here.
Information for Distributors, Wholesales, and Retailers
Governor Hochul had previously directed distributors, wholesales, and retailers of motor fuel and highway diesel motor fuel to prepare for the upcoming suspension of these taxes. Those businesses can learn more here.
Senate Majority Leader Andrea Stewart-Cousins said, “New Yorkers have been picking up the tab for economic hardships due to geopolitical conflicts and a global pandemic. That is why we suspended the fuel tax and, starting today, are giving workers and families a break that they deserve and allowing them to keep their hard-earned money in their pockets. I am proud to have led the Senate Majority in working with Governor Hochul and Speaker Heastie to support New York consumers during these uncertain economic times.”
Assembly Speaker Carl Heastie said, “As gas prices continues to hit record highs, the Assembly Majority remains committed to delivering relief for New York’s families and small businesses. I am hopeful that this suspension of the gas tax by the state and certain counties will alleviate some economic pressure as families prepare for their summer vacations and businesses rebound from the economic impacts of the pandemic.”
Suffolk County Executive Steve Bellone said, “There is no doubt that families across Long Island have been feeling the pain at the pump and today relief is here. Suffolk County’s gas tax cap, combined with New York State’s cap, will put money back in our residents’ pockets and provide drivers with much needed relief at the pump. Every penny matters and we will continue to do what we can to help our residents through these difficult times.”
Broome County Executive Jason Garnar said, “As one of the only Southern Tier counties to cap the tax on gasoline, we will now have some of the lowest fuel prices in the state. I encourage all drivers passing through Broome County and our neighbors in Tioga and Chenango to stop here to fill their tanks. I appreciate the Governor’s leadership, and my partners on the County Legislature for taking quick action that helps put money back in the pockets of our residents.”
Schenectady County Legislature Chairman Anthony Jasenski said, “Cutting the State and County gas tax is the right thing to do for our families, many of whom are struggling to make ends meet due to the increasing costs of food, fuel and other necessities. While the root cause of the challenges facing our residents is beyond our control, the state and county must act to do what we can to help mitigate those challenges. We thank Governor Hochul for taking this this step to provide some relief for our residents, and for giving Schenectady County the ability to do so as well.”
Westchester County Executive George Latimer said, “All Westchester County drivers thank Governor Hochul for her leadership in reducing the pain at the pump. Saving money on your car trips each day can make a big difference – and that difference can significantly add up over time especially during summer driving months. Here in Westchester County we are doing what we can locally, and state wide all New Yorkers appreciate this important and timely savings.”
Oneida County County Executive Anthony Picente said, “Skyrocketing inflation is having a devastating impact on the budgets of working families and people need help. Together, with the Board of Legislators, we capped our county’s gas sales tax at $3 per gallon, and combined with the state’s gas tax suspension, that will result in a current savings of approximately 25 cents per gallon for our residents. It is our hope that this action will provide some measure of relief to those struggling to make ends meet during these tumultuous economic times.”
Ulster County Executive Pat Ryan said, “We know the pressure everyone is feeling right now with record fuel prices and record inflation, and that’s why we’re proud to have cut the county gas tax by 50%. I want to thank Governor Hochul for her leadership on this issue. Together, we are aggressively working to meet the urgency of the moment to provide relief for Ulster County residents.
Yates County Legislature Chairwoman Leslie Church said, “The Yates County Legislature is happy to join with the nine other counties in New York State that capped the local sales tax on gasoline at the $2 per gallon maximum. Because inflation is currently so high and purchasing fuel is such a necessity, a break at the pump was a logical choice to give an immediate financial break to our residents, as well as the many visitors to our County.”
Saratoga County Board of Supervisors Chairman and Town of Moreau Supervisor Theodore T. Kusnierz, Jr. said, “Saratoga County is pleased to join with New York State to provide this extra bit of relief to motorists. Whether it’s savings at the pump or providing the lowest property tax rate and the lowest sales tax rate in all of New York State, Saratoga County is taking every step possible to reduce the burden of the nationwide inflation crisis on our taxpayers.”
Livingston County Board of Supervisors Vice Chairman and Town of Caledonia Supervisor Daniel L. Pangrazio said, “Livingston County relies on the generation of sales tax as part of its operating budget. However, the skyrocketing price of fuel and additional tax generated from that should not come at the expense of our residents. Gasoline sales generate a significant percentage of our overall sales tax collection, so while we struggle with our own rising costs, please know that this measure by your County Board of Supervisors is a call to action to help.”