Albany Passes Auto, Home Fuel Tax Relief Legislation

Consumers suffering from gas pump price shock and skyrocketing home heating costs finally received some potential relief yesterday when both houses in the Albany legislature passed bipartisan tax cutting measures that could bring consumers some savings.

However, reports circulated in Albany after passage of the bills said that Governor George Pataki may veto the measures when they come to him for his signature.

The measure involving home heating costs was sponsored by Assemblymember Michael Gianaris (D-Astoria) and authorizes the repeal of the New York City 4 percent sales tax for all forms of home heating costs, including oil and gas. The lawmaker estimated it could save New Yorkers more than $300 million a year.

As for the effort to lower motorists' gasoline costs, the lawmakers voted to cap the sales taxes on gas and diesel fuel at 8 cents per gallon, effectively freezing the tax at the present $2 per gallon rate, according to state Senator Serphin Maltese (R-C, Middle Village).

Maltese' senate colleague, Senator Frank Padavan (R-C, Bellerose) stated, "Yesterday's agreement on capping and reducing the sales tax on gasoline is one of the best things to come out of Albany this year.

"My colleagues and I in the senate have passed similar legislation three times and I am elated that the Assembly leadership has finally realized the need for relief from soaring gas costs."

Padavan said the bill was crafted after legislation he first passed in the senate last February 15. He stated, "I understand how burdensome rising fuel costs have been and know that a reduction in the sales tax is only a portion of what needs to be done. but I also know it will help- estimated savings are more than $450 million annually."

Gianaris cited the same potential savings estimate on the gas sales tax reduction. "Currently motor fuel is subject to a 4 percent sales tax which rises as the price of gas increases," he explained.

Gianaris, taking a slap at the Bush presidential administration, stated: "In the face of the federal government's failure to address sky-high gas prices, it is necessary for those of us in state government to do whatever we can to make things a little easier."

The gas tax plan takes effect on June 1 for the state sales tax relief. The local sales tax cut on home fuel takes effect July 1.

Maltese pointed out that the gas sales tax slash legislation requires that service station owners who collect the sales tax for the state, must pass along the savings to consumers.

He said the state Commissioner of Taxation and Finance, in conjunction with the state Consumer Protection Board chairman, would be charged with enforcing the 8 cent-per-gallon cap.

-John Toscano