Senator Volker Fights For Lower Gas Prices

Urges suspension of State sales tax on gasoline, greater emphasis on renewable energy sources to decrease reliance on foreign oil

(DEPEW, N.Y.) With gasoline prices now approaching $4 per gallon putting a strain on New York’s hardworking families and small businesses, Senator Dale M. Volker (R-C-I) today announced that the Senate will act on legislation to provide much needed relief at the gas pump by suspending New York State’s gasoline taxes during the summer travel season.

The bill (S7594-A), will eliminate the New York State taxes on gasoline from Memorial Day weekend through Labor Day. If the federal, State and local governments all temporarily suspended their taxes, New Yorkers would save 65 cents per gallon at the pump.

"With gasoline reaching the $4.00 mark and going higher, everyone is feeling the pinch in their wallets," said Senator Dale M. Volker. "In western New York, driving is a necessity, not a luxury. Paying higher prices at the pump also increases the costs of all goods and services that are purchased on a daily basis. From groceries, to planning a family vacation, the strain our family finances are reaching a breaking point, and people’s expendable income is disappearing. With people spending less, our economy is constrained further and making our situation worse. We need to give our taxpayers relief at the pump, and our legislation will do just that."

If the State enacts this tax relief plan, New Yorkers would save approximately 32 cents per gallon in state gasoline taxes, including 16 cents from the State’s Petroleum Business Tax, 8 cents from the State sales tax, and 8 cents from the State’s Motor Fuel Excise Tax.Presidential contenders John McCain and Hillary Clinton have already called for a suspension of the 18.4 cents per gallon federal gasoline tax during this period, which would significantly increase the potential savings.

Meanwhile, under the bill, local governments would have the option of waiving their local sales taxes of approximately 14 cents per gallon. The bill will be structured in a way that provides a guarantee of sufficient State resources to fully fund the State’s Dedicated Highway and Bridge Trust Fund.

The Senate Majority plan would also reduce gasoline costs to local small businesses, leading to lower prices on consumer goods and services, and give a boost to the State’s vital tourism industry.

While the plan to suspend the State’s gasoline taxes provides immediate relief from high costs at the pump, Senate Republicans also called for a renewed emphasis on renewable energy sources that will decrease our reliance on foreign oil in the future. Specific legislation includes:

* S3497-B -- Removes the State sales tax on hybrid and alternative fuel vehicles.

* S4363 -- Provides an EZ Pass discount for fuel efficient vehicles.

* S6198 -- Allows a property tax exemption for farmland devoted to woody bio-mass for fuel sources production.

* Senate resolution calling on the Congress and President to take immediate action to reduce the price of fuel and to launch a major commitment to promote the use and production of alternative fuels.

In addition, the State Senate is prepared to introduce a bill to amend the current bio-fuel production credit to provide for an additional twenty-five cent per gallon incentive for cellulosic ethanol production in New York State.