Senate votes to ax state gas tax

Opinions of area leaders differ on county options

Staff and wire reports
ALBANY — The New York Senate has passed legislation to suspend state gasoline taxes for the summer, but the initiative has little traction because of opposition from the Assembly and Gov. David Paterson.

The Republican-sponsored bill would eliminate the gas tax between Memorial Day weekend and Labor Day.

The proposal comes at the same time the federal government and presidential candidates are debating a federal ‘‘holiday’’ from gas taxes.

Locally, officials in Fulton and Montgomery counties have differing opinions on the state’s plan and whether their counties should eliminate local gas taxes.

Gloversville 5th Ward Supervisor Michael R. Rooney, chairman of the Fulton County Board of Supervisors, today said he was not in favor of the state eliminating the gas tax.

He said the impact and its onus will directly shift to property taxes, which also will hurt the county.

“If you suspend the [gas] tax, it goes directly into a tax for real estate,” Rooney said.

He said that because people are spending so much on gas, they’re spending less on other things anyway.

“When we lose the gas tax, it’s not as if there’s one bill that goes down and nothing else goes up,” Rooney said.

He said he’s also against wiping out the county’s share of sales tax, which is in reality the county’s part of the gas tax, because it also would hurt the local economy.

In Montgomery County, Board of Supervisors Chairman Vito Greco, a Republican, said he would personally be in favor of eliminating the gas tax.

“With the financial situation right now, I would be in favor of this,” Greco said. “I have always been in favor of anything to protect residents from extra taxes, especially with the economy right now.”

Greco said he didn’t know if the entire board would support dropping the gas tax. It would need to be reviewed in committee first.

“It’s too early to tell right now,” Greco said.

Greco said committee meetings would be conducted to decide if it is the right thing to do.

He said, however, if the state does not pass the legislation to drop the tax, he would follow the lead of the state.

Amsterdam Town Supervisor Tom DiMezza, a Democrat, said he thinks getting rid of the tax would help consumers, but could leave a large gap in revenue that would need to be made up elsewhere.

He said he would have to give the idea some thought before making a decision.

DiMezza said he thinks the Federal government should end its gas tax and have the oil companies make up the difference.

“They’re making billions off the American people and it’s time that ended,” DiMezza said.

Rooney agreed, saying the gas price issue is a “global” one that is not easily solved on the state or county levels. He said the president can help solve the crisis by making the “right moves.”

State Senate Republicans claim the bill would save New Yorkers about 32 cents per gallon in state petroleum business, sales and motor fuel excise taxes. The measure passed the Senate 46-15.

‘‘Look at New Jersey, where you’ll find a lower tax for gasoline, and you know what you’ll find? A lower price for gasoline,’’ said Sen. Andrew Lanza of Staten Island. ‘‘Gas costs more here, because we impose a higher tax here. If we impose a lower tax here gas will cost less here. What is so hard about that to understand?’’

Opponents to the New York measure — which comes in an election year when the cost of gas is a top complaint for voters — say they don’t trust the oil industry not to jack up prices to eliminate any consumer savings.

Rooney agreed with that assessment.

“I think people are going to be victims, no matter what,” Rooney said. “I think they’re [the state] throwing a drop of water on a fire.”

The bill would also authorize anti-price gouging penalties for gas station owners and gasoline distributors who don’t pass the savings on to consumers, Republicans said.

Paterson has said New York can’t afford to lose the hundreds of millions of dollars in revenue in the face of more than $20 billion of projected deficits over the next three years.

Republicans claim that if federal, state and local governments all temporarily suspended their taxes for the summer, New Yorkers would save 65 cents per gallon at the pump.

Presidential candidates Sens. John McCain and Hillary Clinton have already called for a suspension of the 18.4 cents per gallon federal gasoline tax over the summer. Sen. Barack Obama has opposed the suspension.

Silver said the Senate’s measure would result in a $500 million shortfall in revenues, undercutting funds dedicated to state to road and bridge construction.