| Issue 320 | June 4, 2001 |
If
Governor Pataki’s warning that NY State may go through the summer without
a budget proves true, the drive by the State Senate and motoring advocates
to rescind the state sales tax on gasoline willonce
again fail. The Senate’s original plan, also backed by Assembly Republicans,
was to suspend the 4% sales tax on gas and diesel fuel from Memorial Day
to Labor Day.It’s unclear, now
that the start date has been passed, if the idea will be in play if and
when Albany’s gridlocked budget talks get moving again.Most
of NY State’s sales tax goes to the general fund. Advocates for the tax
holiday argue that tax yields from high gas prices in the spring and fall
will make up for lost summer revenue.The
4% sales tax on gas is distinct from NY State’s actual gas tax ¾
the 8-cent/gallon Motor Fuel Tax, whose receipts largely fund highway and
transit capital programs.Gas sales
tax suspension also received significant attention in Albany budget
press releases in 2000, but was eventually scrapped during budget talks
as a “low priority.”
Glacial
budget-making is also delaying the provision reducing property taxes
for freight railroads (MTR
#312).There is apparent
agreement on this policy by Governor Pataki and both legislative houses.But
because it is a budget provision, it will wait.Railroads
argue that very high taxes on rail property in NY State retard investment
in rail freight infrastructure, and say the budget delay is already
affecting capital programs planned for this year in anticipation of tax
relief.
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