Submitted by the Office of Assemblyman Will Barclay
NEW YORK STATE – Assemblyman Will Barclay is calling for relief for motorists after gas prices skyrocketed and reached an average of $3.18 per gallon-a $.16 increase over last month.
Barclay has signed onto legislation that would reduce the petroleum business tax and state sales tax on gasoline and create more incentives for consumers to buy lower-emission ethanol fuel.
“We can no longer stand by and watch the gas prices escalate when we have sensible, cheaper and lower-emission alternatives waiting to be used. Some economists predict prices may reach $4 per gallon before the end of the year. These crippling prices are adversely affecting the entire economy, and could possibly drive us into recession,” said Barclay.
New Yorkers pay about $.33 per gallon in state and local taxes, on top of a federal tax of 18.4 cents per gallon. There are seven separate taxes on a gallon of gasoline in New York State, four of which fall under the state’s purview, including state, local, motor fuel tax and petroleum business tax.
The legislation that Barclay is sponsoring would reduce the petroleum business tax by 50 percent. It would also cap the sales tax at $.04 per gallon. Currently, the state sales tax is capped at $.08 per gallon. The resulting decrease would save motorists 12.5 cents per gallon right away.
Barclay is also a co-sponsor of legislation that would establish an “Alternative Fuel Incentive Fund.” Pursuant to this legislation, state sales tax on gasoline would be collected and used to provide tax credits, grants, investments and other incentives to encourage people to buy hybrid and flex-fuel vehicles. It is anticipated that the fund would provide $30 million for research and development for fuel diversification; $27 million for all gas stations located on the New York State Thruway to be equipped with alternative fuels, such as ethanol; and, $20 million for grants for cellulosic ethanol refinery.
“The alternatives create competition in the marketplace. Without the alternatives at the pumps, the price of petroleum will continue to remain high,” said Barclay. “We’ve known this for some time and it’s only logical that we make ethanol more available to drivers, especially as more plants around the state gear up to produce ethanol.”
Ethanol is $1 cheaper than petroleum-based fuels and has considerably less greenhouse gas emissions. It’s also biodegradable and does not contaminate water supplies if it is spilled. There are approximately 6 million E-85 compatible vehicles in the United States, 200,000 of which are driven by New Yorkers.
“Though ethanol may not be the total solution to our high-fuel costs, building incentives to use it along with other alternative fuels is the only way to wean ourselves off of oil. The economic benefits are manifold as well, as it supports local agriculture and manufacturing, and ultimately promotes greater national security through energy
independence,” said Barclay.
