SENATOR JOHNSON CALLS FOR SUMMER GAS TAX HOLIDAY

State Capitol, Albany, New York, April 30, 2008 -- State Senator Owen H. Johnson (4^th Senate District, Babylon), Chairman of the Finance Committee, today joined his Senate Majority colleagues in calling for passage of legislation that would suspend New York State’s sales tax on gasoline during the summer travel season.  Johnson said that with gasoline prices now approaching $4 per gallon, this legislation would provide some much-needed relief to financially strained Long Island families and small businesses.

Johnson explained that the bill (S7594-A) would eliminate the New York State sales taxes on gasoline from Memorial Day weekend through Labor Day.

“Long Islanders have been hit with price increases on several fronts,” explained Senator Johnson. “Not only is gasoline more expensive, but so are eggs, milk and bread.  People desperately need some relief and they need it now.   This is absolutely the right course of action to take if we want to help people get back on their feet and stimulate the economy.”

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. 

Senator Johnson noted that 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.  At the same time, the Senate bill would give local governments the option of waiving their local sales taxes of approximately 14 cents per gallon, adding even more to the potential savings.

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

• S.3947B -- Removes the State sales tax on hybrid and alternative fuel vehicles
•  S.4363 -- Provides an E-Z Pass discount for fuel efficent vehicles
• S. 6198 -- Allows a property tax exemption for farmland devoted to woody bio-mass for fuel sources production.

"The suspension of the sales tax on gas will help motorists right now,” added Senator Johnson.  “But we need to do more to help avoid escalating prices in the future.  That’s why it is so important that we encourage renewable sources of energy."

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