New York lawmaker proposes gas tax holiday extension

(The Center Square) – New York’s gas tax holiday is set to end at the end of the year; however, one state senator wants it extended, and tweaked.

The current holiday, which began June 1, suspends 16 cents of the tax, and allows local governments to suspend their tax as well.

Earlier this week, state Sen. Jim Tedisco, R-Glenville, called for either Gov. Kathy Hochul, or his legislative colleagues to hold a special session to discuss Senate Bill S8728, which is his plan to cap the tax when the price of gas hits $2.25 per gallon. From there, the rate would be reduced as prices rise, and would be suspended immediately once prices reach $3.

According to the senator, the proposed bill would save New Yorkers 33 cents per gallon when gas hits $3.

Tedisco said New Yorkers are still feeling the effects of inflation, especially at the pump. According to AAA, the average price for a gallon of regular gas in New York is $3.874, with the average county price ranging from $3.695 in Seneca County to $4.252 in Manhattan.

Gas prices in parts of New York were well above $5 per gallon when the holiday began.

He argued suspending the gas tax would help the state, because it would give consumers more money to spend elsewhere.

“At a minimum, the legislature should extend the current state gas tax suspension before it expires on Dec. 31,” he said. “What makes the most sense is to help consumers now by passing my cap and suspend legislation to deliver long-term relief at the gas pump anytime inflation rears its ugly head.”

A spokesperson for Hochul, told Spectrum News earlier this week that the governor is “deeply committed” to making sure money stays in New Yorkers’ wallets as inflation continues to plague the economy. The gas tax holiday has already saved New Yorkers more than $600 million.

Though, not everyone agrees with an extension. On Wednesday, Reinvent Albany, a government transparency advocacy group, released a report looking at the looming fiscal cliff the Metropolitan Transportation Authority faces once it exhausts federal pandemic relief money.

According to the advocacy group, the beleaguered transit agency needs dedicated sources of revenue to stay solvent. The group issued a series of recommendations, which includes rejecting a gas tax holiday extension that they claim has only helped high-income earners and gas companies.