Albany, N.Y. (WBEN) The massive $220 billion dollar state spending plan struck by legislative leaders in Albany contains tax breaks for drivers and homeowners.
In response to rising gasoline prices, officials agreed to suspend a portion of the state tax on gas from June 1 until the end of the year. That would allow New York drivers to save roughly 16 cents per gallon of gas which is currently priced at about $4.30 per gallon.
"The exact form of the gas tax relief was up in the air as recently as earlier this week," said Jimmy Vielkind, Albany reporter with the Wall Street Journal.
"There was a school of thought that they would send checks to motorists,
versus suspending the tax. But they finally settled on 16 cents per gallon of relief starting on June 1."
Gas tax money generally goes toward roads and bridges. Leaders have already decided to transfer cash from the general fund to reimburse the state’s highway and bridge fund to make up for lost gas tax revenue.
Why wait until June for gas tax relief
"What we've seen in other states," said Vielkind, "is that suspending the gas tax is not the easiest thing to do." Many gas stations pre-pay the gas tax to suppliers. So, giving everyone a month or more to figure out implementation is what officials were thinking."
Governor Hochul also noted that at the beginning of Summer, in June, gas prices start to go up because of of a different fuel mix. She wanted relief to come at that time.
Counties can take action on additional gas relief
Governor Hochul said counties are also considering suspending their portion of the gas tax for a more cumulative effect and greater impact.
In Erie County Friday, with gas at an average of $4.30 a gallon (AAA of WNY),
drivers are currently paying:
18 cents a gallon in federal taxes
33 cents a gallon in state taxes
22 cents a gallon in county taxes
Property tax rebate for homeowners
The budget includes a new property-tax credit for 2.5 million eligible residents earning less than $250,000. "The total is about $1.2 billion dollars, said Vielkind. "Checks will be between $500 and $600 dollars and
should be going out sometime in late summer or early fall, before the next election," he added.
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