By Mark Scott
Albany, NY – Governor George Pataki says a proposal to cap the state sales tax on gasoline did not go far enough to encourage the use of alternative fuels or ensure that consumers would see the savings. He also questioned where the state would make up for the $450 million in annual lost revenue.
But Pataki stopped short of saying he would veto the measure.
The bill passed by the State Legislature Monday would cap the sales tax at 8 cents per gallon when gas tops $2 a gallon. State Assemblywoman Francine Delmonte of Niagara Falls says consumers would save 4 cents a gallon at current prices.
"If gas is selling at $3 a gallon, people will be charged only 8 cents per gallon, not the 12 cents they've been paying all along," Delmonte said.
The bill, which would take effect June 1, would give local governments the option to cap or lower their local sales tax on gasoline.
Lawmakers said the bill would ensure savings are passed along to consumers by gasoline retailers by fining gas station owners who do not lower prices to coincide with the lower tax.