Buffalo, N.Y. (WBEN) - During a vote on Thursday to pass the Erie County budget for 2024, county lawmakers were also tasked with voting on a measure to extend limits on taxing gasoline and diesel fuel sales, exempting any Erie County gas tax over $2.00 per gallon.
However the measure was defeated by a vote of 6-5 among Legislators, meaning the gas tax limit will end this coming March.
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One local owner of multiple gas stations in the region, Carl Hasselback, has been vocal in his opposition to the gas tax break expiring in Erie County. He knows that when the gas tax limit expires, Erie County will have the highest gasoline tax rate in the State of New York.
"Not one of the highest, you're going to have the highest. That's where you go from where you are today, to where you're going to be when this expires because of the 8.75% sales tax rate in our county, which virtually no one has anywhere in New York State except here. But it is what it is, that's what happens," said Hasselback in an interview with WBEN on Friday.
A year ago when the vote was made to extend the gas tax break in Erie County, Hasselback felt it was a great idea, as the county has extra money. Fast forward to Thursday, he feels the vote is indicative of county lawmakers saying there's not enough money, and they need more tax revenue.
"I have some very serious doubts about that to begin with," Hasselback said.
Other than that, Hasselback feels it's a question of when does the taxpayer get their money back?
"If you increase gasoline taxes, everybody pays more money in tax rates. When they have too much money, they go out and spend it. They don't ever return it to the taxpayer. Whether it's a gasoline tax, real estate taxes, any other sales tax or anything else," he said. "I was in the Air Force years ago, and I used to watch the budget process. The budget process was, 'We can only increase the amount of spending we do.' If you don't increase it, then whatever you are - the colonel of a base or something like that - you're not one of us anymore. So tax and spend, it's a great idea if people don't have to pay for it. Unfortunately, citizens, in this case, of Erie County are going to pay for it, and it's a shame. It's also a shame because other people run their counties on less money."
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In terms of how this vote will affect his business, Hasselback says the end of the gas tax break will make his stations non-competitive with other counties.
"There was never any great money in this for me. I don't get to increase the margins I operate on, because the tax goes up," he said. "What happens is on that given date in March, I have to pass on an additional 10-to-12 cents, or whatever it is at that time, to my customers. I have no choice. I think everybody understands that. If all the counties all taxed the same way, or if Erie County taxed less like other counties do, it would all be the same thing. But in this case, my cost goes up, my price has to go up, I become less competitive versus an adjoining county. Niagara County, Orleans, Genesee, whatever."
While the vote to extend the gas tax limit in Erie County was turned down on Thursday, Hasselback is confident this issue will not go away quietly.
"I think this issue is going to come up in February again," Hasselback said. "I have five supporters, and I think this issue will come back up, or I'll continue to bring it back up in the future. They've eliminated the 10-cent a gallon tax as of March 1. There's nothing to keep the County Legislature and the County Executive from going back to the flat 10-cents. They can do it anytime, and I think it's going to come up in budget hearings in February. I think it's going to come up when everybody's standing there and going, 'Boy, you know what, we've got more revenues than we ever admitted we have, and now we have to be in a position where we're either going to spend it or return it to the taxpayer.'"