Politics & Government

UPDATE: County Tax Cap Saves Locals Pennies at the Pumps

Will cap sales tax on county's portion of fuel priced more than $3 a gallon wholesale.

The day after a gas tax cap was supposed to be enacted, Suffolk County Legislature Presiding Officer William Lindsay said Wednesday that a “technical error” will delay implementation of the tax cap for at least another three months.

Lindsay, D-Holbrook, said the county law was never filed with New York State.

He added that a special meeting has already been called for Thursday, and Suffolk County Executive Steve Levy has been asked to file a certificate of necessity. The tax cap can be filed following another affirmative vote, and would begin three months after it is filed with the state.

A tax cap passed by Suffolk County Legislators taking effect Tuesday will offer consumers a slight break at the pumps, a welcome relief as prices approach $4 a gallon.

Passed on Aug. 3, 2010, the tax cap will limit Suffolk County's sales tax levy on motor and diesel fuel once prices hit $3 a gallon.

“In a matter of 30 days gas has gone up 10 cents a gallon,” said Legis. Tom Muratore, who co-sponsored the bill along with Legis. Jay Schneiderman, Legis. Ed Romaine, Legis. Kate Browning and former Suffolk legislator and now New York State Assemblyman Dan Losquadro.

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According to LongIslandGasPrices.com, the one-month average of the price of gas per gallon has risen from $3.36 on Jan. 28 to $3.59 on Feb. 28. 

Gas prices in Smithtown have risen 10 cents per gallon in the past week. The lowest price at the pump as of Feb. 26 was found at BP, located at 679 Middle Country Road in Saint James, at $3.49 per gallon.

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According to Robert Lipp, deputy director with the Suffolk County Legislature Budget Review Office, since the county tax cap starts at the $3 wholesale price, customers would only start seeing relief with pump prices above $3.30 a gallon. Though, the county tax only equates to a few cents per gallon.

Lipp, who voted against the cap, added that the average annual savings for drivers – at $3.50 per gallon, 12,000 miles per year, 20 miles per gallon – will be $8. 

"That's $8 on my pocket that isn't going to the government," said Bill Faulk, legislative aide for Romaine.

The tax cap does not affect home heating fuel oil, though Muratore said the county is currently looking into the current tax structure.

Among other things the county is looking into is the current sales tax on home heating fuel, which Muratore would not comment on whether he and his colleagues would suspend the county tax on.

“We must reorganize, redirect and refocus our efforts to stabilize our local economy,” he said.

Romaine pointed to increased problems with the Federal Reserve and tensions in the Middle East as key issues to gas price inflation.

Oil prices “will be subject to wild gyrations, due to one of the oldest factors in the oil business — political tension and/or change in the Middle East,” Anthony Sabino, a professor of law at St. John’s University whose legal practice includes oil and gas law, told the Wall Street Journal this week.

“This is a message that we’ll not let county government be subject to the international crisis we see out there,” Legis. John Kennedy said. “We have to work smarter, we have to work better and we have to look at the alternative types of energy we’re putting in place.”

As for residents, most are up in the air about the plan and it's immediate impact.

"I think it might help a little bit; every little bit helps," said Claire McNeil, 47, of Holbrook, who was filling up at the Sunoco station on Veterans Memorial Highway. "It's good that they're trying. It's a start."

Steve Kreuter, 32, of East Yaphank, who also filled up at Sunoco, doesn't think taxes are the issue.

"Oil companies are good at raising prices, but not good at lowering them when prices go down," he said. "Every little bit helps. I don't know if it will make a huge difference."

Suffolk County Exec. Steve Levy signed off on the legislation in August.

Joseph Pinciaro and Shana Braff contributed to this story.


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