BUFFALO, N.Y. -- Counties in New York have until May 2 to cap sales tax on gasoline at either $4, $3 or $2 per gallon in order for that relief to go into effect on June 1.
New York State Association of Counties Deputy Director Mark LaVigne said seveal counties — Nassau, Suffolk, Onondaga, Oswego, Monroe,Dutchess and Oneida — have already taken some action.
"So if it's capped at $3 per gallon, which some counties are considering and have done, then it would be like paying a tax on a gallon of gas that costs $3," LaVigne said.
The relief would be on top of the 16 cents per gallon the state will provide from June 1 to December 31. LaVigne said major considerations for county leaders are the amount of sales tax they projected for this year, federal funds they've received and general fund balances.
"It's going to be an easier decision for some counties to cap their local sales tax on gasoline, and for other counties, it's going to have a negative impact so you will see different decisions across the state," he said.
Erie County Legislature Minority Leader Joe Lorigo said the administration plans to propose a $3 cap and his conference is in favor of capping it even lower at $2. He said he doesn't expect the cap to create any budget holes this year, and regardless of where it ends up, should have broad support.
"I think eliminating the tax burden that people are dealing with at a time when inflation is through the roof and everything is costing more money is something we should all be able to agree on," Lorigo said.
He said Erie County plans to enact a cap by resolution, which will give it more time to finalize details. The other option is to pass a local law, which requires a public hearing.
In that case, LaVigne said counties would have to propose the law immediately.
"The counties that don't act by May 2 will have another window of opportunity over the summer to take action that will be effective on Sept. 1," LaVigne said.
He said counties also must consider whether the savings will reach the consumer or if gas stations will pocket more profit. Lorigo said ideally the market should drive down prices but there are some ways to police price gouging.
Counties have the option of imposing the cap for as long as they choose. Lorigo said he would potentially be in favor of making an Erie County cap permanent.