This week, New York Governor Kathy Hochul announced a fuel tax holiday through the rest of the year in order to provide consumers with relief from high costs at the pump.
Hochul says that the fuel tax suspension will include motor fuel excise tax, state sales tax, and Metropolitan Commuter Transportation District sales tax on motor fuel and diesel motor fuel. The fuel tax suspension is expected to reduce costs by at least sixteen cents per gallon statewide.
The fuel tax holiday went into effect on June 1, 2022, and will remain in effect through the end of the year, officials say.
“Fuel prices have surged in recent months, hurting working families and small businesses the most, and it is crucial that we provide New Yorkers relief,” Hochul said. “By suspending certain fuel taxes for the next seven months, New York is providing some $609 million in direct relief to New Yorkers — a critical lifeline for those who need it most. At a time when families are struggling because of economic headwinds and inflation, we will continue to take bold action to reduce the economic burden on New Yorkers and get money back in their pockets.”
In addition to the statewide fuel tax suspension, twenty five New York counties have set temporary caps on the sales tax charged per gallon of gas and diesel.
Effective this week, Delaware, Dutchess, Erie, Monroe, Putnam, Rockland, Saratoga, Schenectady, Ulster, Wayne and Yates counties will collect tax only on the first $2 charged per gallon of gas and diesel, regardless of the actual price at the pump. Allegany, Broome, Cattaraugus, Chautauqua, Jefferson, Livingston, Nassau, Niagara, Oneida, Onondaga, Oswego, Suffolk and Westchester counties will collect tax only on the first $3 charged per gallon of gas and diesel, regardless of the actual price at the pump.
Seneca County previously only collected sales tax on the first $2 charged per gallon and will continue that policy, Hochul’s office said.
“As gas prices continues to hit record highs, the Assembly Majority remains committed to delivering relief for New York’s families and small businesses. I am hopeful that this suspension of the gas tax by the state and certain counties will alleviate some economic pressure as families prepare for their summer vacations and businesses rebound from the economic impacts of the pandemic,” said Assembly Speaker Carl Heastie.