Molinaro Proposes Tax Relief on Gasoline & Diesel Fuel

Press Release

Marc Molinaro this past week proposed a temporary amendment to the Dutchess County's sales tax calculation on retail sales of motor fuel and diesel motor fuel, capping the amount of sales tax the County collects and offering residents much-needed relief as fuel costs spike due to worldwide pricing forces. Dutchess County Government expects to officially adopt the sales tax change within the next two weeks.

"As the price at the pump skyrockets, I propose Dutchess County do all it can, under New York State law, to ease the pain for local motorists and businesses. These price spikes and taxes affect those lower and middle income workers and families the most and to them this means a lot. As a local government, we have the opportunity to make a real and positive difference in your pocket and we have to do it. "

Molinaro continued, "Once again, Biden, Pelosi, and Delgado are abdicating their responsibilities onto others and local governments. It is clear who is doing their job and who isn't. I offer to the three of them, follow our lead- cut taxes and provide relief. "

Molinaro's proposal would cap the amount of county sales tax collected on each gallon of retail motor fuel at $.08. Under the current sales tax methodology, consumers pay 3.75% county sales tax on their total motor fuel purchase, in addition to a myriad of other State and federally imposed taxes and fees.

New York State law imposes strict parameters on how counties tax motor fuel purchases. Counties have two options for calculating the sales tax on motor fuel -- a percentage rate method on the total purchase or a cents-per-gallon methodology, calculated at a cents-per-gallon rate which, when applied to the county's sales tax percentage of 3.75%, equals either $2 per gallon or $3 per gallon. Counties do not have an option to exempt retail gasoline or diesel fuel purchases from local sales tax under State law.

As does nearly every county in New York State, Dutchess County currently uses a percentage rate method whereby the County receives sales tax totaling 3.75% of all motor fuel sales in the County; if a gallon of gas costs $4.25 for example, the County receives $.16 per gallon in sales tax. Under County Executive Molinaro's proposal, the County would implement a cents-per-gallon methodology, rather than a percentage of a climbing price, with county sales tax charged only on the first $2 of the per-gallon gasoline price, or a total of $.08 per gallon.

Local county sales tax is one of several state and federally imposed taxes and fees on retail sales of gasoline and diesel purchases. The pump price per gallon of fuel includes federal tax, NYS motor fuel/diesel motor fuel excise tax, a petroleum business tax, the NYS Sales Tax (which includes the Metropolitan Commuter Transportation District (MTA) tax) as well as local sales tax.

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