Politics & Government

UPDATE: Technical Error Stalls Gas Tax Cap for at Least 3 Months

Law was never filed with New York State.

The day after a gas tax cap was supposed to be enacted, Suffolk County Legislature Presiding Officer William Lindsay said Wednesday that a “technical error” will delay implementation of the tax cap for at least another three months.

Lindsay, D-Holbrook, said the county law was never filed with New York State.

He added that a special meeting has already been called for Thursday, and Suffolk County Executive Steve Levy has been asked to file a certificate of necessity. The tax cap can be filed following another affirmative vote, and would begin three months after it is filed with the state.

Passed on Aug. 3, 2010, the tax cap will limit Suffolk County's sales tax levy on motor and diesel fuel once prices hit $3 a gallon.

“The new law puts millions of dollars back into the pockets of residents and businesses of Suffolk County," said the bill's sponsor, Legis. Tom Muratore, R-Selden. "No one would have anticipated the tension and conflict in Egypt and the rest of the Middle East that continues to drive gas and fuel prices to the highest level in recent history. Government must learn how to do more with less.”

According to LongIslandGasPrices.com, a website which allows users to post where they can find the cheapest - or most expensive - prices around, the average cost of regular gas on Long Island has risen from $3.36 to $3.59 in the past 30 days. According to the United States Energy Information Administration, New York State saw its regular grade gas prices rise from $3.33 to $3.54 in February. 

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The tax cap affects wholesale gas prices over $3.00 per gallon. So according to Robert Lipp, deputy director with the Suffolk County Legislature Budget Review Office, the difference between wholesale and retail prices wouldn't benefit the average consumer of a $3.00 gallon at the pump. Counting state petroleum, excise, and sales taxes, Lipp's office equated roughly a 30-cent difference between the two.

"The tax cap is on the wholesale price," he said. "So the point to be made is that if consumers are seeing a price of $3.30 at the pump, that is the equivalent of a wholesale price of $3.00."

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Lipp, who said that his office "has always been against the cap" because "we have some serious budget issues that need to be dealt with," estimated that the cap would save taxpayers $3.8 million - out of a Suffolk County budget of roughly $1.9 billion.

Lipp added that the average annual savings for drivers (at $3.50 per gallon, 12,000 miles per year, 20 miles per gallon) will be $8. 

"That's $8 on my pocket that isn't going to the government," said Bill Faulk, legislative aide for Legis. Ed Romaine, R-Center Moriches, who co-sponsored the bill. 

At the pump, Calverton's Gulf and Citgo stations are regularly among the cheapest on Long Island, according to LongIslandGasPrices.com. On Monday evening at 6:45, the Gulf station on Route 25 was the cheapest at $3.41 for a gallon of regular gas, compared to a Long Island average of $3.57.

One customer, a courier who wished to remain anonymous for job security purposes, said that since gas prices have started to tick up in recent weeks, an additional $200 is coming out of his weekly paycheck to pay for gas. Another said that she would be willing to keep paying the cost if the revenue loss to the county is coming from something valuable.

"I'm all for a tax cap," said Lisa Meyer Fertal. "But where is this money going to? Depending on where it's coming from I'd rather just pay the extra at the pump."

The tax cap does not affect home heating fuel oil, though Muratore said the county is currently looking into the current tax structure. 

 

Chris Vaccaro contributed to this article.


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