New York State Assembly

Assembly Minority Leader Brian M. Kolb (R,C,I-Canandaigua) was joined today by members of the Assembly Minority Conference and business leaders from across the state to reinforce their support for the elimination of the "18-a energy tax" from the 2013-14 State Budget.

"It's time we take actual steps to make living and doing business in New York State a little bit easier for families and job creators. Hidden taxes and fees like the 18-a assessment hurt New Yorkers trying to cope with fiscal challenges and stifle economic development," Leader Kolb said. "The 18-a assessment is an energy tax that was introduced as a temporary measure. Now, we face a proposal that will force New Yorkers to endure more high energy costs, and add $2.5 billion onto consumer energy bills over the next five years."

A quick look at any electricity bill in New York State reveals the "Temporary State Assessment Surcharge," also known as the "18-a energy tax." This assessment was scheduled to be reduced this year, saving consumers over $200 million, a savings consumers will not see if the fee is extended. Extending the fee also would cost consumers $236 million in 2013 and $2.8 billion over the next six years.

Heather Briccetti, President and CEO of The Business Council of New York State, Inc., said, "New York electric bills are heavily burdened by hidden taxes. A report by the Public Policy Institute of New York found that one quarter out of every dollar paid on a New York State electric bill goes toward state and local taxes. For the state's economy to improve, we must take steps to reduce energy taxes, not add or extend additional assessments that increase costs to businesses. We thank Assembly Minority Leader Kolb, Senate Majority Leader Dean Skelos, Sen. George Maziarz and members of their conferences for their efforts to remove the proposed extension of the 18-a tax from the state budget."

Brian Sampson, Executive Director of Unshackle Upstate, said, "New York State's homeowners and businesses pay some of the highest energy costs in the nation. Governor Cuomo and members of the Legislature must turn out the lights on the 18-a energy surcharge," Sampson said. "We've opposed this senseless surcharge since it was first enacted in 2009 and will continue to fight for its repeal. If our leaders in Albany are serious about energizing our economy and boosting job growth, they must reject an extension of this hidden tax."

Karyn Burns, Vice President of Communications and Government Relations for the Manufacturers Association of Central New York, said, "During difficult economic times, it is critical to do whatever is needed to foster a healthy business climate that can enable businesses to sustain and grow. In an energy-intensive sector such as manufacturing, an extension of a fee such as 18-a will do the opposite: it is instead forcing businesses to utilize their dollars as a tax to the state, rather than providing capital investment or improvements, investing in their communities or sustaining and growing much-needed family-supporting jobs throughout the state. Simply put, it is a regressive tax that was originally intended to be a temporary measure, was described as such to New York State taxpayers when it was adopted, and needs to remain that way. I stand here today urging Albany to do what is right for our New York State businesses and residents and oppose the reauthorization of the 18-a assessment."

Julie Suarez, Director of Public Policy for the New York Farm Bureau, said, "New York lawmakers must take this opportunity to remove the Article 18-a assessment fee from the state budget. It's an additional financial burden placed on the state's farmers, who are dealing with some of the highest production costs in the country while trying to fend off global competition to feed the people of this state healthy, local food. We commend Assembly Minority Leader Kolb, Sen. Skelos, Sen. Maziarz and their respective conferences for their work to eliminate this two percent energy tax that restricts growth in New York."

Mike Durant, State Director for the National Federation of Independent Business (NFIB), said, "Energy costs remain a significant problem for small businesses. Repealing the onerous 18-a assessment has been a priority for NFIB since it was enacted, and we are pleased to stand with Minority Leader Brian Kolb in calling for this tax extension to be removed from the final budget agreement."

John Ravitz, Executive Vice President of The Business Council of Westchester, said, "Rising energy costs are one of the key burdens that businesses in New York State continue to face. I urge all of the members of the Westchester delegation in the New York State Assembly to oppose the 18-a tax extension and not include it in this year's budget. We need each of them to understand the negative ramifications this tax continues to have on businesses in their districts."

Andrew Rudnick, President and CEO of the Buffalo Niagara Partnership, said "A, if not the, top Albany priority this year is to keep the 18-a utility assessment from being extended one second. The Governor's proposed five-year extension of this energy tax has a particularly negative impact on Upstate energy users, especially manufacturers. Thus, we strongly call for its sunset in 2014."

Section 18-a of the Public Service Law authorizes the state to impose a fee on electric bills from public utilities to fund the operations of energy-related agencies and authorities. In 2009, then-Gov. David Paterson signed legislation authorizing increasing the fee from one-third of a percent to two percent, a six-fold increase for most ratepayers. This fee was scheduled to sunset this year. The chart below shows what the total average cost would be for business users over the next six-year period should 18-a be extended.

Impact of Extending the 18-a Utility Tax

Since the extension of 18-a was announced in the Executive Budget, a coalition of 30 chambers and associations - from Staten Island to Buffalo - have come together to engage their members and their local legislators to stop this tax extension. For a complete list of business groups and state legislators that support the removal of this hidden tax from the state budget, visit The Business Council Web site.