Motorists who fill up in Dutchess County soon may be saving a few cents on the cost of each gallon under a plan proposed by County Executive Marc Molinaro and County Legislature Chairman Gregg Pulver. Molinaro and Pulver announced they are proposing a resolution for the County Legislature to approve that would temporarily amend the way the county”™s sales tax is calculated on retail sales of gasoline and diesel fuel.
The way the sales tax is now structured, customers pay 3.75% of fuel purchases as county sales tax. As the cost of a gallon goes up, so does the amount of sales tax the county collects. The idea is to change that so the amount the county collects in sales tax would be capped at eight cents per gallon.
“We recognize this relief is limited, but we must do what we can to help as families, farmers and small businesses are crushed by rising costs,” Molinaro said. “By cutting and capping the county tax on gas we can provide some assistance and I encourage my colleagues to adopt this proposal.”
Under New York state law, counties have the option of charging a percentage rate or a cents-per-gallon rate. Counties do not have an option to exempt retail gasoline or diesel fuel purchases from local sales tax under New York state law.
The plan calls for Dutchess to switch from the 3.75% percentage rate to a cents-per-gallon rate that is about the equivalent of what would be collected at 3.75% if the fuel cost $2 per gallon.
Pulver said, “Our nation is currently experiencing inflation the likes of which we haven”™t seen in some 40 years, including recent spikes at the pump. County Executive Molinaro and I feel strongly about cutting and capping the county”™s tax on motor fuel to help families throughout Dutchess County during these difficult economic times.”
The County Legislature was expected to vote on the resolution at its April 11th board meeting, and the new sales tax cap would be effective June 1, 2022, pending approval of the New York State Commissioner of Taxation and Finance. Calculation of the tax on gasoline and diesel would go back to the old way on December 1, 2022.
Molinaro and Pulver point out that county sales tax is one of several state and federally imposed taxes and fees on retail sales of gasoline and diesel purchases. The others include federal tax, state excise tax, a petroleum business tax, state sales tax that also includes the Metropolitan Commuter Transportation District tax, and local sales tax.
The proposal to cut the Dutchess fuel tax drew bipartisan support from legislators.
Yvette Valdés Smith, leader of the Democratic minority in the legislature, said, “We recognize that this is a first small but important measure and are committed to continue looking for ways to help the residents we serve.”
Republican Leader Will Truitt said, “Unlike the failings of leaders at other levels of government that have led to the exponential increase in gas and diesel prices recently, locally we continue to take action to provide relief. I look forward to its enactment so our neighbors throughout the county can keep more of their hard-earned dollars.”
