Pennies off per gallon from governor

For the past few weeks, Flushing resident Justin Kim, 31, has spent more than $70 per week filling up his gas tank in order to drive to work, but he is only one of millions of New Yorkers feeling the pain at the pump.
In order to attempt to ease the burden on New York drivers, Governor George Pataki signed a new law establishing a cap on the State sales tax on gas at the $2 per gallon level on Monday, May 22. Later that day, City Councilman David Weprin, who is chair of the finance committee, introduced legislation calling for the City to do the same.
Under the new state law, New York will continue to impose sales tax on gas and diesel fuel, but it will limit the sales taxes collected to a maximum of eight cents, an amount equal to the sales tax when the fuel price is $2 per gallon. This should result in about a nickel a gallon savings at the pumps at current pricing levels.
“The impact of high fuel prices is being felt by families and businesses across the state, and I am signing this legislation in hopes that these tax cuts will provide some modest relief, especially as we enter the busy summer travel and tourism season,” Pataki said.
However, some residents are not satisfied with the new legislation.
“It’s terrible,” said Paula Gatto, who drives between Long Island City and Flushing everyday to get to work. “I think they should reduce everything.”
Weprin’s legislation, which he introduced on May 22 but will likely not be discussed until next week, calls for capping the city’s portion of the sales tax at $2 per gallon as well. This would, if enacted and signed off by the Mayor, add another nickel off per gallon at the city’s gas stations.
“I think it will have strong support in the Council, but the question is whether the Mayor will support it,” Weprin said.
In the past, Mayor Michael Bloomberg has spoken out publicly about his opposition to capping the sales tax on gasoline, but Weprin believes the Council will support the bill and override a possible mayoral veto.
“We have to look at the costs, but if we are going to do it in any year, we have to do it this year,” Weprin said.
In addition to capping the state sales tax, Pataki’s legislation includes a personal income tax credit of up to $500 for installing new energy-efficient, ENERGY STAR home heating systems.
Meanwhile, as the summer months and busy travel season approach, Queens motorists will still have to deal with the high prices.
“The prices are crazy,” said long-time Flushing resident Benjamin Lee. “I have been living here for 30 years, and it’s the worst I’ve ever seen it.”