Gas Tax Holiday?

For more than a month, Assembly Republican Leader James Tedisco has been fighting for the “Summer Gas Tax Holiday” by means of hard copy and online petitions, which have been circulated throughout service stations and repair shops across New York State, including his blog, “Tedisco’s Take.” While there are no concrete numbers on the hard copy petitions, the assemblyman has been able to gather more than 2,000 electronic signatures through the online version, Joshua Fitzpatrick, spokesperson for Tedisco, said.

According to Fitzpatrick, Tedisco was inspired to take action by listening to people out in the community and from the thousands of emails he receives weekly concerning the high gas prices.

“High gas prices have a negative multiplier effect, driving up the cost of everyday goods as small businesses bear the price of higher fuel costs and ultimately pass it on to consumers. The fastest way to put the brakes on rising fuel, food and other commodity costs is by instituting a much-needed holiday from state fuel taxes for motorists and small businesses.” Tedisco wrote on his blog.

The proposed legislation would eliminate three separate gas taxes imposed by New York State on a single gallon of gas or diesel fuel: an 8-cent motor fuel tax, an 8-cent sales tax and a 16-cent petroleum business tax, Fitzpatrick said. Eliminating the taxes would save motorists 32-cents on a single gallon of gas.

Although most motorists would probably love the opportunity to save a few bucks at the pump, others do not agree that eliminating the taxes for the summer is any kind of a real solution to the problem.

“I think it’s a terrible idea,” Pat Nixon, of Saratoga Springs, said. “I think people are going to continue driving more and it’s not a real solution to the problem, but more of a quick fix.”

Sharon McFarlane, of Wilton, said she thinks it’s a waste of time and the consumer will not necessarily benefit from the move.

The state Senate previously passed its own version of the bill by a margin of 46 to 15. The Assembly bill was first introduced in the beginning of May by Assemblyman Rob Walker of the 15th district. The bill was originally intended to be in effect from Memorial Day through Labor Day.

“Memorial Day has come and gone, but we are going to keep fighting because we figure better late than never,” Fitzpatrick said. Legislation on the bill ends June 23.

On his site, Tedisco also says that he and the rest of the Assembly Republican Conference also support the proposal recently put forth by Republican presidential nominee Senator John McCain (R-Arizona). The proposal would also institute a “Gas Tax Holiday” amendment, which would temporarily eliminate the 18.4-cent per gallon federal gas tax between Memorial Day and Labor Day, as well.

“It is simple economics: when people have to spend more on basic necessities like fuel and food, they have less to spend elsewhere, causing a further drag on an economy already mired in recession,” Tedisco wrote on his blog.

Gov. Paterson has stated that New York can ill afford to lose the hundreds of millions of dollars in revenue the “Summer Gas Tax Holiday” would cost the state.