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Tax cut saves drivers $450 million
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The Legislature passed a law – based on legislation Assemblyman Magnarelli sponsored – to provide
motorists with relief from high gas prices by reducing and capping state and local sales taxes on
gasoline (Ch. 35 of 2006).
This agreement will save New Yorkers millions of dollars annually at the pump by capping state sales
taxes on gas at 8 cents per gallon, which locks in the tax at the $2 per gallon rate. With gas prices at
$3 per gallon, this agreement reduces the tax on gas by 4 cents per gallon.
The Legislature’s gas tax plan takes effect June 1 for the state sales tax and July 1 for local sales
taxes. With this agreement, local governments will be able to pass legislation to cap their local sales
taxes on gasoline, for a potential savings of $450 million statewide.
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Fighting for alternative fuels
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Recognizing the importance of increased alternative fuels use as a part of an effective energy strategy
for the future, Assemblyman Magnarelli’s legislation included a plan to increase the distribution of
feasible alternatives to gasoline.
Under the bill, the state Thruway Authority and the New York State Energy Research and Development
Authority would be required to develop a plan to provide alternative fuels at Thruway service areas.
Assemblyman Magnarelli has also been working to help bring Northeast Biofuels to Central New York.
By turning the former Miller Brewery plant into an ethanol production plant, Central New York can start
focusing on the use of renewable energy sources. This will be one of the largest ethanol facilities in the
nation. By building partnerships with businesses and farmers, this new plant could be producing
corn-based ethanol by 2008, and cellulosic ethanol in only a few more years.
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Providing property tax relief
The state budget also includes property tax rebates that average $209 for Onondaga County
homeowners who receive Basic STAR and $318 for seniors who receive Enhanced STAR.
Unfortunately, the governor also vetoed this tax rebate for homeowners. Assemblyman Magnarelli
voted to override his veto, and will fight to make sure rebates are released this year.
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