By Mark Scott
Buffalo, NY – There are proposals at the county, state and federal levels to cap or temporarily eliminate taxes on gasoline. But Erie County Comptroller Mark Poloncarz says such efforts provide little relief to drivers and end up boosting oil company profits.
Several county legislators are proposing to cap the county's portion of the sales tax at three dollars per gallon. Lawmakers rejected such a move two years ago. And Poloncarz says that was a good thing since tax caps have not worked well elsewhere.
"Unfortunately, the counties that instituted a cap previously found out the oil companies did not pass the savings onto consumers," Poloncarz said. "They kept their prices high. If anything, they used the reduction in the sales tax to inflate their profits."
Poloncarz says if the County Legislature had enacted a cap on gasoline taxes two years ago, the county would be losing nearly $17 million a year in revenue. He's urging lawmakers to reject similar calls this year.