Buffalo, NY (WBEN) A New York State senator from Otsego County says New York can afford to suspend its gas tax as the pain at the pump increases and he's proposing halting collection of it for a few months.
Senator Peter Oberacker says New York's coffers won't suffer much as a result either. "We are roughly getting on this tax $190 million per month," says Oberacker. "That combined, with a $10 billion surplus, the state can absolutely afford to suspend the gas tax."
Oberacker points out he only wants to suspend the revenue stream for several months. "I'm calling for this tax to only be suspended until September. So it's not a full year. It's just giving a tax reprieve, you know, for those folks that are really in need,"
explains Oberacker.
Governor Kathy Hochul told reporters this week she's hesitant about suspending the tax. "I don't have any guarantee if you suspend the 10 cent per gallon tax on gas, that it's actually going to result in lower prices because they're going to keep going up," said Hochul. She's says the issue is out of the hands of the service station, and this is a matter of supply.
Hochul noted the money from the tax goes to road repair and improvements. But Oberacker says that's not necessarily the case. That's why he has another part in his gas tax suspension bill. "I am also requesting as part of this legislation is that (the revenue) actually goes where it's supposed to go, which is the dedicated highway and bridge Trust Fund," says Oberacker. He cites an audit by Comptroller Tom DiNapoli found that only 17 cents of every dollar taken in actually goes to that fund, which Oberacker finds unacceptable.
The average price of gas in WNY is at an all-time high, $4.40 a gallon, according to AAA.